29 Aug 2022 16:58

Consumption in Russia to decline 4.2% in 2022, growth in 2023 expected at 2.5%-3% - Belousov

MOSCOW. Aug 29 (Interfax) - Consumption in Russia will decline 4.2% in 2022 and will grow by 2.5-3% in 2023, First Deputy Prime Minister Andrei Belousov said at a meeting of the presidium of the government commission on improving the stability of the Russian economy amid sanctions.

"We believe that in terms of consumption this year, taking into account the decline in Q2, the decline will be about 4%, 4.2%. In 2023, we have every reason to reach positive trends of about 2.5%-3%," Belousov said.

The drop in consumer demand bottomed out in Q2 and the situation will improve after that, he said, referring to the results of an analysis carried out by the Russian Economic Development Ministry in conjunction with the Finance Ministry and Central Bank.

"And a very important conclusion that we came to after a thorough analysis [...] most likely, consumer demand gas bottomed out. We just have entered a growth trajectory. What will be the gradient, the angle of inclination of this curve? This question, depends on the government's actions, among other things. Expectations based on numbers, on trends - that we got through the worst times in the second quarter. Then there will be a gradual improvement," he said.

Belousov said "gradual recovery" was currently under way in consumer demand.

"We see that the shock that was associated with the rise in prices in March-April is gradually passing - to a greater extent it concerns food products, to a lesser extent non-food products, but demand is gradually starting to revive in both," he said.