Russian economy is stable – Putin

The head of state says he expects inflation to drop to 5% in the first quarter

The Russian economy is in better shape than previously expected, and is on course for further stabilization, Russian President Vladimir Putin said on Russia 1 TV channel on Sunday.

According to the head of state, all major economic indicators point to a further stabilization of the country’s economy.

“The situation in the economy is stable, moreover, it is much better than what not only our opponents, but even we ourselves predicted…One of the main indicators – unemployment – is at a historic low. Inflation is lower than expected and is displaying a downward trend,” Putin said.

He noted that inflation is expected to slow from the current 11.9% to around 5% in the first quarter of the year.

“Apart from everything else, industrial production is on the rise, as well as agriculture and construction. So on the whole, the situation here is not just stable, but I think quite satisfactory, if not good,” Putin continued.

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Annual inflation in Russia in 2022 came in lower than previously predicted – both the Central Bank and the Ministry of Economic Development expected the indicator to surpass 12%. Consumer prices soared in the first half of last year, after the start of the Ukraine crisis and Western anti-Russia sanctions that followed. Inflation peaked in April at 17.83%, but gradually subsided in the following months. Western economists last year predicted inflation in the country would surpass 20%.

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