ALEXEY VEDEV SPOKE ON HOW THE RUSSIAN ECONOMY HAS ADAPTED TO SANCTIONS AND WHAT AWAITS IT

Alexey Vedev, Head of the Financial Studies Department at the Gaidar Institute, took part in the “Den” program on the RBC channel. The topic of the program was devoted to the sanctions’ anniversary after Russia recognized the independence of the DPR and LPR. Alexey Vedev answered questions on how sanctions have affected the economy, the lives of Russians and the country as a whole.

The expert noted that the authorities were preparing for more dramatic economic losses, but timely measures and the correctly chosen strategy helped the economy rebuild quickly. According to Alexey Vedev, the projected decline in GDP in 2023 is expected to be in the range of 2% to 10%. The decline in 2022 was 2.1%, but taking into account the rate of households’ consumption, 5%, the fall in GDP can be adjusted to 4%.

For the first time the government has chosen the right tactics, a stimulating policy aimed at stabilizing economic processes. The expert does not see an inflationary threat. If the ruble exchange rate remains stable, the inflation rate will be 3%-5% by the middle of the year. Devaluation expectations are important and, according to the expert, modernized targeting is the best mechanism for maintaining macroeconomic stability.