23 Nov 2022 15:36

Drop in Russia's GDP could be less than 3% in 2022 - Mishustin

MOSCOW. Nov 23 (Interfax) - According to Russian government forecasts, the drop in the country's GDP could be less than 3% in 2022, Prime Minister Mikhail Mishustin said at a meeting on economic issues.

"The data on GDP are now substantially better when compared to the forecasts from the first half of the year. Let me remind you that some experts had foreshadowed a possible drop of nearly double-digit figures. It is already obvious today that the pessimists were incorrect. Many organizations have improved their assessments for the dynamics of the Russian economy, including international ones, like the IMF, the World Bank, and the OECD. According to our preliminary forecasts, we could very well reach a figure that is less than 3% [of a decline in GDP] in 2022," Mishustin said.

"Despite the stabilization of the situation in the economy, there are various options for forecasts and scenarios for events to unfold," he said.

"We need to be extremely attentive to the ongoing processes, taking into account the possible further strengthening of the global crisis, the dynamics concerning other factors, including sanctions pressure, and to respond to this appropriately. To work out solutions and draft responses, analyzing all possible scenarios, primarily concerning the further restructuring the balance of payments, deforexation of the economy and increased international settlements in rubles," he said.

"When coordinating fiscal and monetary policy, we will jointly rely on the new fiscal rule approved by the head of state, according to which we will be able to use about 8 trillion rubles of oil and gas revenues to finance expenses over the next three years," Mishustin said.

He also said it was necessary to provide for measures to stimulate investment activity, including a state guarantees mechanism.

There is also a need to be prepared for potential changes in the labor market "associated with the restructuring of the economy," he said. "There is now a shortage of personnel in many areas. It is necessary to take specific decisions to overcome it and ensure market flexibility," Mishustin said.