Monthly figures suggest Russian economy on transition to growth path from stabilization - Putin

MOSCOW. Sept 12 (Interfax) - Month-on-month dynamics for key macroeconomic indicators suggest the Russian economy is gradually stabilizing and on a transition to a path of growth, President Vladimir Putin said at a meeting on economic issues.

"I'd like to re-emphasise that Russia is coping well with pressure from outside, from what you could say is essentially financial and technological aggression on the part of some countries. The tactics of the economic blitzkrieg, of the onslaught they were counting on, have not worked - this is already obvious to everyone, and to them too," he said.

"The monthly dynamics also suggest that the economy is stabilizing gradually, levelling, and entering a growth trajectory. Enterprises are getting back to a normal work rhythm," he said.

"Let's say that in July, industry fell just 0.5% [year-on-year] after declining by 2.4% in June. There has been growth in construction - 6.6% in July. GDP decline in July slowed to 4.3% [in annual terms, according to an Economic Development Ministry estimate]. I recall that a month earlier [in June] it was estimated at 4.9%," Putin said.

"Significantly, lending by banks to the economy, to the real sector, and to individuals also revived in August. This is of course a good sign, pointing to an increase in economic activity," he said.

The Russian Economic Development Ministry estimates GDP fell 4.3% year-on-year in July 2022 after falling 4.9% in June, 4.3% in May and 2.5% in April. The economy fell 1.1% in January-July 2022.

The ministry last week improved its own forecasts for 2022 and 2023: it now expects the economy to fall 2.9%, compared to the 4.2% decline it was predicting in the middle of August; and 0.9% in 2023, compared with the August forecast of 2.7%.

Analysts told Interfax in a consensus forecast at the start of September that they thought GDP would fall 4.3% in 2022 and 2.0% in 2023.