Russian Economy To Grow 2.8 Percent in 2023: Putin

On Monday, President Vladimir Putin stated that the Russian gross domestic product (GDP) will grow 2.8 percent in 2023 despite the current devaluation of the ruble.

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"In April we expected GDP growth of 1.2 percent. At the beginning of the year, they even predicted negative growth... At the end of the year, however, growth can reach 2.8 percent," Putin said when opening the meeting for 2024-26 budget planning.

The Russian economy grew 1.6 percent in the first half after a 1.8 percent contraction from January to March, the Federal Statistics Service reported at the time.

Putin highlighted today that the current macroeconomic situation is solid and balanced and compared it with the economy of 2021, before the start of the war in Ukraine, a matter that he will address with Prime Minister Mikhail Mishustin on Monday.

"In general, it can be said that the recovery phase of the Russian economy is over. We have withstood absolutely unprecedented external pressure," he stressed.

Between July and August, state revenues from oil and gas sales recovered almost to 2022 levels, Putin said, adding that those budget revenues will increase as international energy prices continue to rise.

The Russian leader attributed the acceleration of inflation to the devaluation of the ruble and called on the Central Bank to take measures "in time" to avoid further deterioration of the national currency.