Russia’s GDP growth is twice as high as that of developed countries – Kommersant

Russia’s GDP growth is twice as high as that of developed countries – Kommersant


Prime Minister Mikhail Mishustin began the government’s annual report to the State Duma. In his speech, he outlined macroeconomic stability and responsible fiscal policy as the foundation for GDP growth, which amounted to 3.6% in 2023. The example emphasized that Russia has adapted to the sanctions, and budget revenues for 2023 exceeded 29 trillion rubles. This is almost 5% more than the same figure for 2022. The execution of budget expenditures last year approached 100%.

As the prime minister noted, Russia “has successfully passed the difficult period of initial adaptation.” GDP growth of 3.6%, he estimates, is more than double the average for developed countries. Russia is one of the five largest economies in the world in terms of purchasing power parity, and Mr. Mishustin sees the potential to get into the top 4.

“This ratio has become one of the consequences of sanctions, which inevitably hit the economy of their initiators,” noted Mr. Mishustin. He noted that the place of European, American and Japanese manufacturers who left the country is taken by organizations from friendly states. “And, of course, the most actively operating domestic companies,” the head of government emphasized.

Mikhail Mishustin noted that last year’s high figures in the economy were the result of “the implementation of the president’s decisions, the work of the government, all branches of government, business, public associations and citizens.”

Positive dynamics in the economy were achieved against the backdrop of low unemployment, which fell by half by the end of 2023 to 3%. At the same time, the prime minister admitted that annual inflation was higher than target values. “But thanks to interaction with the Bank of Russia, it still slowed down significantly. Up to 7.4%,” he said.

Mr. Mishustin also emphasized that federal budget revenues and the economy as a whole are becoming less dependent on raw material exports. “Non-oil and gas revenues increased by a quarter,” Mr. Mishustin emphasized.

The Prime Minister also said that last year the volume of investments increased by about 10%. According to his estimates, this is a record for 12 years.

“Entrepreneurs are investing their resources in our country. And the Government proposed sharing risks between the state and business. At the beginning of this year, sixty-five agreements on the protection and promotion of investment have already been signed, amounting to investments of about four trillion rubles. Of these, about half were in 2023,” the head of government told deputies.

Mr. Mishustin said that thanks to funding from the National Welfare Fund, 17 infrastructure projects received funding in the amount of more than 1 trillion rubles last year.

Read about the reasons for the unexpected acceleration of the economy in 2023 in the Kommersant publication “GDP was taken out of reserves”.



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