During a regular videoconference on economic issues, President Vladimir Putin stressed that the Russian economy continues to grow despite a slowdown in July-September. The country’s GDP continued its upward trajectory nonetheless, climbing 4.2% from January to August. The president mentioned “our own structural constraints” among the difficulties that influence the country’s economic development.
The GDP figure is projected at 3.9% at yearend, which will be above the world average rate, the president said. He clarified that, according to the IMF, global GDP growth in 2024 is expected to be 3.2%. According to Putin, Russia’s industry is setting a good pace, driving the growth of GDP.
“Over the first eight months of this year, Russia’s industrial production increased by 4.5%, with manufacturing growing by 8.1%, and the mechanical engineering sector adding almost 20%,” Vladimir Putin said.
Also, for the third consecutive month, unemployment remains at 2.4%, which is a record low, he added.
The president cited shortages in personnel and technology, logistical hurdles as well as external sanctions as factors that cause persistent challenges and imbalances within the economy. These factors are reflected, among other things, in the dynamics of consumer prices, he said.
“Growing at 3.9% is good enough. However, given the structural changes that the Russian economy is undergoing, GDP growth does not correlate with the growth of well-being as much as it did before this structural transformation,” economist Sergei Khestanov, Associate Professor at RANEPA, says. “A similar picture was observed in the late Soviet period, when economic indicators were rising, but the level of general well-being continued to decrease.”