Head of the Russian Ministry of Economic Development Maksym Reszetnikow gave a warning at the International Economic Forum in St. Petersburg. This is an annual event in the second largest city of Russia, which aims to emphasize the economic efficiency of the country and acquire foreign investors.
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The Russian Minister of Economy was a guest of one of the panels at the International Economic Forum in St. Petersburg. During the discussion, he referred to the question, “whether there is a supervisory in the Russian economy.”
“According to the data, we have a slowdown, but all our data is basically a rearview mirror. According to current feelings of business and indicators” – According to the Russian Information Service, RBC said Reszetnikow.
The minister also noted that whether the country will fall into recession or not depends on the government's actions. “In the future, everything depends on our decisions,” said Reszetnikow, according to RBC.
Minister of Economy of Russia: The economy is on the brink of recession
For balance for the surprising words of the head of the Ministry of Economy, more optimistic assessments were presented by the Minister of Finance of Russia Anton Silanov and the president of the central bank Elvira Nabiullin.
According to the Russian Information Service of the RBC Siluanov talked about the “cooling” of the economy, but he noticed that after each cooling “Summer always comes”. Nabiullin said that the Russian economy only “comes out of overheating.”
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The economy, affected by a series of sanctions after the Kremlin sent the army to Ukraine in February 2022, so far exceeded the forecasts. High defense expenses fueled growth and maintained unemployment at a low level despite the power of inflation. At the same time, wages increased to keep up with inflation, leaving many employees in a better situation.
Large recruitment bonuses for military and funeral benefits for those killed in Ukraine also increased income in the poorer regions of the country. However, in the long run, inflation and lack of foreign investment remain threats to the economy, leaving a question mark how long the militarized economy can persist.
