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| Russian economy defying Western sanctions, key Putin aide tells RT | Russian economy defying Western sanctions, key Putin aide tells RT |
| (about 2 hours later) | |
| The country’s GDP is now on track to decline by just 3% in 2022, versus the 7% projected earlier, Aleksey Kudrin said | |
| Russia’s economic contraction is now expected to be much smaller than previously thought, according to Aleksey Kudrin, the head of the Accounts Chamber and former finance minister. | |
| He told RT on the sidelines of the INTOSAI Congress on Thursday that “the situation is actually turning out better than originally thought.” | He told RT on the sidelines of the INTOSAI Congress on Thursday that “the situation is actually turning out better than originally thought.” |
| Kudrin explained that “the unprecedented sanctions that were introduced against Russia, of course, affect our economy, and initially it was predicted that GDP would fall by more than 7%. Nevertheless, now I think the decline will be only about 2.9-3.3%.” | Kudrin explained that “the unprecedented sanctions that were introduced against Russia, of course, affect our economy, and initially it was predicted that GDP would fall by more than 7%. Nevertheless, now I think the decline will be only about 2.9-3.3%.” |
| He believes it will take two to three years for the country’s economy to return to pre-sanctions levels, though “it’s still difficult to make forecasts for the long term.” | He believes it will take two to three years for the country’s economy to return to pre-sanctions levels, though “it’s still difficult to make forecasts for the long term.” |
| Meanwhile, the former finance minister said that inflation would continue to slow and could drop to 4% in 2024. “Inflation is expected to be around 12% in 2022. In this regard, we are certainly seeing a big leap forward. The peak of this inflation was in April, when in annual terms it rose to almost 18%. However, now there is a steady decline.” | Meanwhile, the former finance minister said that inflation would continue to slow and could drop to 4% in 2024. “Inflation is expected to be around 12% in 2022. In this regard, we are certainly seeing a big leap forward. The peak of this inflation was in April, when in annual terms it rose to almost 18%. However, now there is a steady decline.” |
| “In the meantime, the budget deficit may turn out to be higher than forecasts, but Russia has a margin of safety and resources to cover costs,” Kudrin suggested, adding that the “flexibility of the Russian economy is quite high.” | “In the meantime, the budget deficit may turn out to be higher than forecasts, but Russia has a margin of safety and resources to cover costs,” Kudrin suggested, adding that the “flexibility of the Russian economy is quite high.” |
| He also pointed out that many businesses have already managed to reorient to new sales or procurement markets, thus bypassing sanctions. | He also pointed out that many businesses have already managed to reorient to new sales or procurement markets, thus bypassing sanctions. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |