23 May 2022 16:28

Russian economy could transition to growth in GDP in 2024 - Kudrin

MOSCOW. May 23 (Interfax) - The Russian economy could show growth in GDP in 2024, while 2022 and 2023 will be spent on restructuring it with due account of the sanctions introduced, and long-term structural changes could take up to ten years for certain kinds of production, head of the Accounts Chamber and former Finance Minister Alexei Kudrin said.

"These one and a half to two years, they're economic restructuring taking into account these new challenges. Work will without doubt subsequently continue to structurally reorganize the economy in connection with the need to produce goods ourselves. The investment cycle for planning and producing major products takes from five to ten years, that is, it's a long-term structural reorganization," Kudrin told journalists on Monday.

"But the first changes to flows, products, substitutions, or the start of production will take place in the course of two years. Basically, these two years could be years of a reduction in GDP. It's being forecast for now that it will further be positive, that is, we'll enter positive growth," he said.

Individual sectors are currently seeing a drop of more than 50%, for example, the automotive industry, Kudrin said.

"There are questions about the export of goods, servicing settlements, vessels - transport, import and export. The scale of these developments is still being determined as certain sanctions take effect," he said.

Kudrin said in April that the initial restructuring of the Russian economy would take up to two years taking into account sanctions and other challenges.