Ministry of Economy revised GDP growth

The Ministry of Economy has improved its estimate for Russia’s GDP growth in 2023 from 2.8% to 3.5%, Maxim Reshetnikov, its head, said. Thus, he commented on the estimates of GDP for 2021-2022 updated by Rosstat. Rosstat softened the estimate of the decline in GDP last year to 1.2%.

Maxim Reshetnikov, Minister of Economic Development of the Russian Federation. Dmitry Astakhov / RIA Novosti

According to the minister, the improvement in the assessment is “evidence of the stability of the economy,” as well as its adaptation to sanctions.

“This confirms our ability to adapt effectively to any shocks. GDP in 2023, according to the Ministry of Economy, based on statistics for 11 months, will be 3.5%, which is higher than our forecast,” Reshetnikov added.

According to the Ministry of Economy, in November, Russian GDP growth slowed down to 4.4% in annual terms after 5.1% in October. Some slowdown in rapid growth is associated with the measures of the Central Bank to cool the economy, a shortage of personnel, as well as an increase in cost and a reduction in import supplies. At the same time, in November, Russian GDP growth slowed down to 4.4% in annual terms from 5.1% in October.

GDP growth, and even facing an improvement in its assessment, is good. However, one should not forget about the structural restructuring of the Russian economy, Sergey Khestanov, economist, associate professor of the RANEPA, says.

“An important consequence of this very structural adjustment is a change in the previously established links between macroeconomic indicators. Including – between GDP and real disposable income of citizens,” the expert emphasizes.

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