Russian economy actually entering new growth cycle with qualitatively different structure - Putin

MOSCOW. Feb 21 (Interfax) - The Russian economy has shown growth [quarterly, adjusted for the seasonal factor] since the third quarter of 2022, and it is in fact entering a new growth cycle with a qualitatively different structure, President Vladimir Putin said in his address to the Federal Assembly on Tuesday.

Putin recalled that Russia's GDP contracted 2.1% in 2022, which ended up being considerably lower than all forecasts.

"The Russian economy overcame the risks that arose. Many risks could not have been calculated ahead of time, and it was necessary to respond literally 'from the wheels' as problems arose. Decisions were taken as quickly as possible at both the government level and in business. Private initiative and small and medium businesses played a huge role here," Putin said.

"The economic downturn last year was recorded only in the second quarter [quarterly, adjusted for seasonal and calendar factors]. Growth and recovery were noted already in the third and fourth quarters. We actually entered a new cycle of economic growth. According to the experts, its model and structure are taking on a qualitatively different character," Putin said.

According to Putin, "New and promising global markets are coming to the fore, including the Asia-Pacific region, and our own domestic market."

Putin said that the priority was also the "scientific, technological, and personnel base".

"Not supplying raw materials abroad, but, rather, producing goods with high added value. This allows us to unlock the enormous potential of Russia in all spheres and areas," the president said.

"Solid growth in domestic demand is forecast already this year. I am sure that our companies will take advantage of the opportunity to boost output of products in highest demand, and to occupy the niches that have been vacated or are being vacated following the departure of Western companies," Putin said.