Putin: Russian Economy Has Recovered and Is Growing

Russian President Vladimir Putin said that the Russian economy has recovered and is growing. After the recession of 2015 and 2016, the Russian GDP also grew last year, Russia Today reports.

“The positive dynamic in the Russian economy goes on. We have a lower than expected budget deficit; our gold and foreign exchange reserves are growing. The Russian economy is on the rise, and this trend continues,” Putin said.

According to the World Bank data, Russian economy grew 1.7 percent last year and the forecasts say that this year will end with similar numbers. Implementation of structural reforms is the key for grow of the Russian economy, some economists like former finance minister Aleksey Kurdin think.

Meanwhile, the inflation in Russia fell to 2.5 percent last year. That is the lowest level since the collapse of the Soviet Union. Because of the low inflation, the central bank wants to gradually cut the key rate to 6-7 percent per annum. Currently, that rate is 7.75 percent.

Putin emphasized that Russia should maintain the economic growth rate.

“We indeed need to maintain the rate achieved in the economy. We have 1.6 percent of GDP growth and 2.5% growth in agriculture. Our budget deficit is just 1.5% and our inflation is 2.5%, the all-time low figure in the history of the country,” he said.

The president added that all of that evidences very good and fundamental basis, TASS informs.

“Direct investments’ growth is 4.2%. It means relatively to 1.6% growth of GDP that investments outpace GDP growth. It means the groundwork for further growth has already been done and investments have already been made,” Putin stated.
According to him, unemployment decline is also among positive factors. Yet, he warned that the mood should not be relaxing.

“We must understand we still have a lot to do and such growth rates are certainly not comfortable for us,” Putin said.