Nat the opening of the Russian-Myanmar Business Forum, the Russian Economy Minister said that the expectations of foreign experts about the decline of the economy were not justified, it has already withstood several waves of sanctions
Maxim Reshetnikov
The Russian economy was able to withstand the waves of unilateral sanctions, the head of the Ministry of Economic Development Maxim Reshetnikov said at the opening of the Russian-Myanmar Business Forum, TASS reports.
“The Russian economy has managed to withstand several waves of unilateral sanctions. While many foreign experts expected the Russian economy to fall from 8% to 10%, we expect Russia’s GDP to shrink by only 2.9% by the end of 2022,” the minister said.
He noted that inflation in Russia is slowing down and its annual level now stands at 12%. The key priority is to maintain business activity and further develop an open economy and free enterprise, and for this the government creates opportunities for companies to rebuild logistics and find new partners.
The minister also explained that the ruble exchange rate now reflects the real demand for the currency in the conditions of de-dollarization.
“The exchange rate now reflects the real current situation of currency supply and demand, de-dollarization issues, import issues, market expectations issues. If you ask exporters, they will say that, of course, it is necessary to be weaker and it is comfortable, if you ask importers and consumers, they will say, no, you can be stronger. But in any case, the economy will adapt to this course,” he said.
On November 3, in a report to President Vladimir Putin at a meeting with members of the government, Reshetnikov said that the condition for structural adjustment of the economy and its further growth is an increase in investment, but now there are a number of conditions that suppress investment activity.
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The Minister identified three main obstacles to the growth of capital investments. This is a decrease in demand for investments in export-oriented industries, a reduction in enterprises’ own funds, and an increase in uncertainty, which leads to the unwillingness of businesses to take on long-term risks.
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