Russian Finance Minister forecasts economic growth of 2.5% in 2023

By Al Mayadeen English
Source: Agencies
26 Aug 2023 18:04

The Bank of Russia projects that consumer prices will rise by 5-6.5% in 2023.

A Russian flag flies in front of a ruby star atop one of the Kremlin's towers in downtown Moscow. (AFP)

Russian Finance Minister Anton Siluanov said in a Saturday interview with China Global Television Network (CGTN) that he expects the Russian economy to grow by 2.5% this year.

"We are making efforts to offset these consequences, the consequences of sanctions… They are bearing fruit. While the economy contracted 2.1% last year, we expect it to bounce back this year and grow 2.5% or even more," he said.

Although inflation is projected to reach 6% by the end of the year, Russian authorities are working to return the target to 4% next year, Siluanov said.

The Bank of Russia projects that consumer prices will rise by 5-6.5% in 2023. In contrast, the unemployment rate has fallen to a decade-low of 3%, he added.

Russian government tells foreign companies to remain in the country

On another note, the Russian Finance Ministry said on Saturday that a subcommittee of the Government Commission on Monitoring Foreign Investment wants foreign companies to continue their operations in Russia.

To this end, incentives are being created to facilitate this, the Russian Finance Ministry said.

"A subcommittee of the Government Commission on Monitoring Foreign Investment in Russia is interested in foreign companies continuing to operate in Russia. Companies that decide to stay are provided with the necessary conditions, including permission to pay dividends and repay intercompany debt," the ministry wrote on Telegram.

It further said that it will not force companies that choose to sell their businesses to lower the price.

"The valuation is made by an independent appraiser, not by the members of the commission. The price may change only if the commission finds that the market value of the foreign business is estimated incorrectly," the ministry added.

Over the past year, several companies from the EU, the US, and Japan have decided to withdraw or downsize their presence in Russia due to Western-led sanctions on the country.