President Putin confident about Russia’s long-term economic growth

7 Jun, 2018 10:47 / Updated 6 years ago

Russia is currently on a stable economic growth path, President Vladimir Putin said on Thursday during his annual direct Q&A line in Moscow. He stressed that inflation is at a historic low at the moment.

“We have a historic minimum in inflation. This is a very important prerequisite for further growth,” he said.

Gross domestic product is 1.5 percent higher than a year ago, Putin said. He described it as modest but yet sustained, expressing confidence that economic “growth is guaranteed.”

The president also noted the country’s industrial and agricultural growth, which is becoming a steady trend. Putin pointed out that Russia’s agricultural exports, expected to reach $23 billion this year, have outstripped arms exports of $15 billion.

He also praised the accelerated growth in foreign direct investments, which rose 4.4 percent over the past year. “This is a very good indicator,” he said. 

As another positive trend, the Russian president noted the low external debt and the growth of the national gold reserves. He said Russia needs an additional 8 trillion rubles ($129 billion) to implement economic development plans.

“According to preliminary estimates, we could spend 17 trillion rubles over the next six years, but we’ll need at least an additional 8 trillion rubles to fulfill all the tasks we have,” he said.

Among the remaining challenges for Russia, Putin talked about cutting the number of people living below the poverty line by targeted support from the government. He pointed out, however, that wages and disposable income are up and overall, the economy “is moving in the right direction.”

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