SERGEY DROBYSHEVSKY NAMED THE REASONS FOR THE STABILITY OF THE RUSSIAN ECONOMY TO SHOCKS

On May 4, President of the Russian Federation Vladimir Putin held a business meeting with the Head of the Ministry of Economic Development, Maxim Reshetnikov. The Head of the Ministry of Economic Development reported on the steady state of Russia's economy, stressing that Russia's economic indicators were better compared to Western countries. Thus, the year 2022 demonstrated successful adaptation of the Russian business to the changed conditions.

“Having survived the year 2022, Russia's economy prepared for further development at the expense of domestic factors as well as the maximum use of the opportunity to expand its presence in foreign markets in friendly and neutral countries despite all efforts of a number of states to isolate and oust Russian goods from the global market,” said Sergey Drobyshevsky.

Preliminary results of H1 2023 are optimistic for our country, the expert continued. The decline is estimated at only 1 p.p., therefore, if all other quarters of this year are successful, the final values of GDP growth may reach 1-1.5% as forecasted by the Ministry of Economic Development of the Russian Federation.

“The current annual inflation rate (2.6%) is largely influenced by the long period of deflation last year, thus, the annual inflation rate is expected to increase to 6-6.5% by the end of the year, however, in any case, the reduction is more than 2 times compared to previous year,” believes Sergey Drobyshevsky.

He stressed that we should not forget about the global inflation trends and therefore 6% is the “normal” level of price growth for many developed economies in 2023. Russia for the first time in history has a better chance to be a country with inflation below the global average compared to a group of countries demonstrating high inflation rates.