Sunday, June 4, 2023

Putin acknowledges the negative impact on Russia’s economy in the face of a wave of sanctions

Russian President Vladimir Putin has admitted that the sanctions imposed due to the military action against Ukraine will “negatively affect” the development of the Russian economy, although he defended his words in general as a “positive” trend.

Russian President Vladimir Putin admitted today that Western sanctions could have a medium-term negative impact on Russia’s economy.

After this, he appealed to the Government not to relent despite the outcome of the withdrawal from the executive and the Central Bank (BCR).

“The return to the growth trajectory should not relax us, it is necessary to encourage and strengthen the positive of our economy, to ensure its increased efficiency, technological, personal and financial leadership”, he said in a meeting with the Government.

“And we must act quickly without red tape and unnecessary delays, since the illegitimate restrictions imposed against the Russian economy in the medium term, indeed negatively affect it,” said the Kremlin leader.

Russia’s economy contracted by 2.1% last year.

According to the BCR, high frequency indicators show an acceleration of economic activity in the first quarter, although growth only returned in the second quarter.

Russian economy problems

Putin, it is necessary to constantly increase the demand in the family business.

“In the current situation, domestic demand becomes the main factor for economic growth,” he said.

This, the BCR claims, can avoid “excessive acceleration or deceleration” of inflation.

But Putin is not happy with the development of the domestic manufacturing industry.

“So far, the dynamics of our manufacturing industry remain weak, unfortunately, below last year,” he said.

According to the Russian president, “the main goal is to restore affected industries such as the automobile industry and the wood industry.”

“At the same time, we need to speed up the launch of new projects in the manufacturing industry, especially in high-tech production,” he said.

Nation World News Desk
Nation World News Desk
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