The Russian president instructed the government to ensure Russia’s entry into the world’s four largest economies in terms of GDP at purchasing power parity. Within a year, it will carry out an evaluation of the results, writes Jornal Economico. Currently, Russia is the 11th largest economy in the world.
Vladimir Putin Photo: Alexander Kazakov / AP / Profimedia
Russian President Vladimir Putin wants the country’s economy to be among the top 4 economies in the world within a year and has instructed the government to proceed in this direction. According to the TASS agency, the government must inform the head of state on the progress of the measures by March 31, 2025, and then draw up annual reports on the development of the plan.
In particular, the president instructed the government to increase the level of gross value added (GVA) in the manufacturing industry by at least 40% by 2030 compared to 2022; reducing the share of imports to 17% of GDP; and increasing non-energy exports by at least two-thirds. Also, the government must gradually reduce the number of regions with reduced fiscal capacity, the text of the decree states.
To promote this economic ‘leap’, the Bank of Russia, the central bank, is considering the serious possibility of reducing monetary policy rates. The participants at a meeting of the board of directors of the central bank “discussed more deeply the direction of evolution in the situation towards a possible reduction of the basic interest rates. According to the participants in the debate, the reduction requires a more stable slowdown of the current inflation, the decrease of consumer credit and of consumer activity and easing labor market resistance.
The new economic plan implies, according to analysts, a new framework for foreign relations with Asian countries – and especially with China. With the Middle Kingdom planning to grow by around 5% this year itself, its activity will be mainly export, which could conflict with Russia’s intentions. On the other hand, the same sources state, Russian industry is not exactly known for its abundant production capacity of commercial goods. In other words, the growth proposed by Putin to increase non-energy exports seems to be able to ‘collide’ easily with the real economy.
In this framework, the president of the Economic Council of the Federation and Russian Deputy Prime Minister, Alexey Overciuk, chaired a new meeting of the Economic Council of the Commonwealth of Independent States this weekend in Moscow.
The participants addressed “a wide range of issues of economic and trade cooperation between member states”.
In 2024, the Russian Federation chairs the Commonwealth of Independent States. “Our presidency is focused on deepening economic cooperation, especially in the areas of food, technological and energy security, transport and logistics, environmental protection, innovation, digitalization and strengthening industrial cooperation,” said Alexey Overciuk, quoted in an official Kremlin statement. .
The Deputy Prime Minister emphasized that cooperation on the CIS platform will continue to be a basic priority for the Russian Federation. “I think it is important to continue coordinated work to develop economic and industrial capacity and create new forms of mutually beneficial cooperation,” said Alexey Overciuk.
Article made with the support of Rador Radio Romania
