Russian Minister of Economic Development Maxim Reshetnikov predicts that “the minimum contraction of the economy will be exceeded in the last quarter of this year. By the end of 2022, we expect GDP to contract by 2.9%.”
He noted during the government hour at the Federal Council that “the expectations of socio-economic development are based on the scenario of continuing this rapid adaptation (of the economy to new conditions), and he assumes that the economic downturn in 2023 will be 0.8%, mainly due to the effect of a high base in the 1st quarter of 2022 and a decrease in net exports. In 2024-2025. GDP will grow by an average of 2.6% due to the growth of domestic consumption and investment requirement.”
He stressed that “consumer demand will be supported by the growth of real incomes of citizens. Until 2025, the unemployment rate is expected to decrease and real wages and business incomes to grow steadily. An additional contribution will be made by the indexation of social benefits. Together with the revival of lending, each of them will significantly support consumer demand.”
Source: El Iktisad
