ALEXEI VEDEV: “IT WAS A HARD YEAR, BUT THE ECONOMY MANAGED TO WITHSTAND

The Finversia website has published the main points of the speech delivered by Alexei Vedev, Head of the Financial Studies Department of the Gaidar Institute who took part on December 20, 2022 in the video marathon: “Russian Economy and Finances: Results of the Challenging Year” sponsored by Alexei Mamontov’s team (the “Find Mamonta” channel) and Ian Art (the Finversia channel).

“It was a hard year, but it will be harder. As for the good news, the economy has managed to withstand. Today, we see tremendous risks to the Russian economy: stagnation of the global economy and high inflation. This inflation is exported to Russia. So, in 2023 risks will be higher: tougher sanctions, further boycott of Russian exports and other. We assess a fall in GDP in the range of 2%-10%. The government and state-owned companies will be playing a key role. We expect budget deficit growth,” Alexei Vedev noted in his economic forecast.

Alexei Vedev suggests that it is worthwhile to increase fiscal stimulation and support to the hardest hit sectors, as well as take measures to ensure growth in households’ real incomes. Alexei Vedev believes that the government should be the driver of economic development and support.