Meeting on economic issues

The meeting was attended by Prime Minister Mikhail Mishustin Mishustin MikhailPrime Minister of the Russian Federation, Chief of Staff of the Presidential Executive Office Anton Vaino Vaino AntonChief of Staff of the Presidential Executive Office, First Deputy Prime Minister Andrei Belousov Belousov AndreiFirst Deputy Prime Minister, Deputy Prime Minister Tatyana Golikova Golikova TatyanaDeputy Prime Minister, Presidential Aide Maxim Oreshkin Oreshkin MaximAide to the President, Minister of Economic Development Maxim Reshetnikov Reshetnikov MaximMinister of Economic Development, Finance Minister Anton Siluanov Siluanov AntonMinister of Finance, Central Bank Governor Elvira Nabiullina Nabiullina ElviraGovernor of the Central Bank of the Russian Federation (Bank of Russia)and Director of the Federal Service for Financial Monitoring Yury Chikhanchin Chikhanchin YuryHead of the Federal Service for Financial Monitoring.

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Opening remarks at the meeting on economic issues

President of Russia Vladimir Putin: Good afternoon, colleagues.

As we agreed, I suggest that today we discuss the current state of affairs in the Russian economy, the most important industries and the financial sector. In particular, I suggest that we focus on the long-term trends reflected in the country's socioeconomic development forecast until 2030. I would like to emphasise that this will provide the basis for implementing the initiatives outlined in the Address to the Federal Assembly. Today, we will also consider approaches to funding the projects and programmes announced in this strategic document.

First, I would like to focus on a few macroeconomic indicators.

I would like to note that in the early 2024, economic results were higher than the projections made by the Government, the Bank of Russia and certain experts. In January-February, Russia's GDP grew by 6 percent in annual terms.

Of course, this was partly due to the so-called calendar factor, the leap year and additional working days, but even if those were factored out, the trend is still positive.

The industry is making active progress. Industrial production grew by 8.5 percent in February, which was significantly higher than in January, when growth was 4.6 percent.

Moreover, the manufacturing industries have once again demonstrated higher growth rates, which is certainly gratifying. Their growth in January was 7.5 percent, and in February, it reached as high as 13.5 percent.

Accordingly, inflation is gradually slowing down, as are inflation expectations - Russians' assessments and assumptions about how prices will behave in the future - which is even more important.

The current state of the economy indicates that there could be an improvement in forecasts for its growth. Many experts now predict that Russia's GDP could surge by over 3 percent by the end of the year.

I want to emphasise that forecasting is not just about making or refining predictions and then waiting to see whether they come true.

Certainly, we need proactive measures from both the Government and regional authorities to support and promote business and investment activities, including fostering the emergence of new production facilities, particularly in the high-tech sector, and creating modern employment opportunities. Moreover, it involves meeting the increasing demands of the domestic market by improving our production of goods and services to outcompete foreign suppliers. In other words, our focus should be on developing and capturing our domestic market, replacing imports through fair competition rather than administrative interventions and resources.

This goal to boost our domestic production and promote the growth of the national market embodies what we refer to as a supply-side economy. The Address outlined concrete measures for the next six years aimed at bringing about structural transformations in the Russian economy. These measures entail enhancing the country's technological sovereignty by supporting domestic scientific research, promising startups, and the widespread adoption of innovative practices in manufacturing.

Substantial investment is earmarked for strengthening the workforce in the industry and the social sector, spanning all tiers of vocational education from colleges to universities, closely coordinated with businesses and employers.

In our efforts to promote regional development, we will initiate a comprehensive programme to modernise infrastructure, encompassing energy and utility networks, alongside the construction of new transport corridors.

As part of our commitment to support regional finances, one specific measure will involve writing off two-thirds of the budget loans, as previously agreed, and increasing the allocation of infrastructure budget loans. Our aim is to annually increase their portfolio by at least 250 billion rubles.

I want to underscore that these funds and additional resources must be directed towards ensuring stable, long-term growth in both our urban centres and rural communities, and mitigating disparities in socio-economic potential across regions.

Every citizen, regardless of their place of residence, should have equal opportunities. Essential factors include the quality of vital infrastructure for children, such as kindergartens, schools, clubs, sports facilities, and summer camps, as well as the development of healthcare and cultural systems, the environmental wellbeing of communities, and creating opportunities for youth empowerment, entrepreneurial initiatives, and more.

To be continued.

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