Russia's GDP increases 5% in 5 months despite 'outside' interference
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During a meeting on economic issues, the Russian PM reveals that from January to May, the manufacturing sector grew by nearly 9%.
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Russian President Vladimir Putin at the Russia Expo international exhibition and forum at the Exhibition of Achievements of National Economy (VDNKh) in Moscow, Russia, July 8, 2024. (AP)
Russian Prime Minister Mikhail Mishustin announced that the GDP of Russia has grown 5% in the first five months of this year - higher than expected.
During a meeting on economic issues, he said, "Today we will discuss the current situation in the economy. The dynamics remains high - in May growth accelerated slightly compared to April to 4.5%."
He added, "If we take the statistics for five months, the gross domestic product increased by 5% compared to the same period last year. This is significantly higher than forecasts, despite all attempts from outside to stop us."
Mishustin revealed his belief that the data in the real sector of the economy are also positive as he stated that from January to May, the manufacturing sector grew by nearly 9%, citing machine building as one of the key factors in this area, "which showed double-digit growth rates."
"What is very important is that investment continues to grow, which means that a good foundation is being laid for the future. At the end of the first quarter, they (investments - TASS) increased by almost 15%, mainly due to machinery, equipment, investments in intellectual property, the PM noted.
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Firms have their own resources for this, he said, as their profits grow, and regions have become more active in investing in enterprise development and advancement.
"There is a very high level of consumer activity, mainly due to the growth of private incomes. However, the same factor also contributes to the growth of inflation. As of July 1, it amounted to 4.5% from the beginning of the year," Mishustin continued, stressing that inflation "must be dealt with constantly.'
"Despite the summer period, we need to constantly monitor the macroeconomic situation and, if necessary, promptly adjust our action plan in this area, of course, in cooperation with the Bank of Russia," he noted.
Russia’s oil revenue exports surged by almost 50% in June 2024 compared to 2023 due to the country’s flagship Urals adaptation to Western sanctions, Bloomberg reported earlier this month.
Last month, Moscow's crude oil sales revenues saw a significant increase. Oil-related taxes reached 590.6 billion rubles ($6.7 billion), up from 402.8 billion rubles ($4.5 billion) in June 2023, according to Bloomberg’s calculations, based on the Russian Finance Ministry's financial data.
Despite tough measures and Western sanctions, Russia appears to be heading for a "soft landing", where inflation slows without severely impacting the economy. GDP growth remains positive, unemployment is low, and corporate distress is minimal. The Moscow Exchange anticipates increased initial public offerings this year, reflecting investor confidence.
