Putin assessed Russian economy

The economy in Russia is stable overall. The head of state assessed the state during the direct line.

Vladimir Putin said development continues "despite everything. " The President assumed that GDP growth by the end of the year would be 4%.

He noted that the Russian Federation is ranked first in Europe and fourth in the world in terms of economic and financial volume. Over the past two years, the Russian economy has grown by almost 8%. In comparison, the United States has grown by 5-6%, and Europe has grown by only 1%.

"International financial and economic institutions have placed Russia first in Europe in terms of economic volume and purchasing power parity, and fourth in the world - ahead of China, the United States, and India. We overtook Germany last year and have overtaken Japan this year," Putin said during the direct line.

He said last year's economic growth was 3.6%, "this year it will be 3.9%, and maybe even 4%." Over two years, the president explained that economic growth in the Russian Federation amounted to about 8%. At the same time, in the United States, it was 5-6%, in the Eurozone—1%, and in Germany—0," Putin said.

"But this is not the figure at which we should fall asleep and calm down," the head of state noted.

The president said economic growth primarily results from strengthening Russia's sovereignty. "Many manufacturers left the market—what did this lead to? Our entrepreneurs began to produce these goods themselves," he said.

The president emphasized that Russia's unemployment rate is at a record low of 2.3%, which is unprecedented.

Objective reasons explain the rise in food prices—supply does not keep up with demand, and the consequences of sanctions. "There are not as many products as their consumption has increased," the president noted.

According to him, salaries in Russia will increase by 9% in real terms in 2024. To stabilize the economy, the Bank of Russia could use some tools earlier and more effectively without resorting to raising the key rate, Putin said, referring to the opinion of some experts. He emphasized the need to find balanced solutions to curb inflation and support the economy.

Bashkiria is among the leaders of the National Investment Rating. From January to September of this year, regional investments grew by 24.7%.

The volume of GDP should grow to 4 trillion rubles by 2030, the Head of Bashkiria, Radiy Khabirov, set the task for the team, speaking with the Message to the deputies of the State Assembly-Kurultai of the Republic of Bashkiria.

The volume of investments is planned to be increased to 1.25 trillion rubles by 2030.

The region has created comfortable conditions for doing business, simplified the procedure for providing state support measures, and reduced the terms for forgiving plots without bidding.

The republic has become one of the leading industrial regions in recent years. Regarding the effectiveness of industrial policy, Bashkiria is again rated the best in Russia. Since the beginning of 2024, industrial production in the region has grown by 4.3%. In manufacturing industries, it has grown even more—by 7.4%.

This is despite the challenging year for many enterprises. They had to work under sanctions, inflation, and a high key rate.

At the same time, the region is betting heavily on industrial and technology parks. In the coming years, such sites will become centers for developing unique technological competencies.

At the same time, industrial clusters are continuing to form in Bashkiria. There are already 18 of them, and they unite more than 200 enterprises.

Author: Elina Akhmetova