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Russian Minister Says Growth Increasingly Driven by Domestic Demand
(MENAFN) Russia’s economic expansion is expected to be primarily supported by internal demand, according to Economic Development Minister Maksim Reshetnikov, as cited in reports.
Despite ongoing economic pressure linked to Western sanctions over the conflict in Ukraine, officials in Moscow argue that the national economy has demonstrated stronger-than-expected resilience. They also maintain that trade patterns have been successfully redirected toward alternative international partners while external constraints have been absorbed.
In comments published in an interview, the minister stated that growth in the Russian economy is becoming increasingly domestically oriented, with export influence gradually declining. He also noted that real disposable incomes are forecast to increase by 1.6% over the current year, contributing to higher consumer activity.
The minister linked these developments to recent adjustments in monetary policy, particularly the gradual reduction of interest rates by the central bank. Lower deposit returns, he suggested, are encouraging households to spend rather than save, while credit activity is also showing signs of recovery.
He further explained that the government has developed broader economic measures designed to manage external risks such as tighter sanctions, global trade disruptions, and geopolitical instability. These initiatives reportedly include expanded support for large-scale investment projects and the establishment of special economic zones aimed at stimulating regional development.
Additional policy efforts are focused on improving labor productivity through technological adoption, including artificial intelligence and automation. Authorities are also seeking to expand workforce participation through training schemes, internships, and short-term skill programs.
According to the minister, a coordinated approach between fiscal and monetary policy is expected to support a gradual easing of inflationary pressures, with projections indicating inflation could fall to around 5.2% by the end of 2026.
Despite ongoing economic pressure linked to Western sanctions over the conflict in Ukraine, officials in Moscow argue that the national economy has demonstrated stronger-than-expected resilience. They also maintain that trade patterns have been successfully redirected toward alternative international partners while external constraints have been absorbed.
In comments published in an interview, the minister stated that growth in the Russian economy is becoming increasingly domestically oriented, with export influence gradually declining. He also noted that real disposable incomes are forecast to increase by 1.6% over the current year, contributing to higher consumer activity.
The minister linked these developments to recent adjustments in monetary policy, particularly the gradual reduction of interest rates by the central bank. Lower deposit returns, he suggested, are encouraging households to spend rather than save, while credit activity is also showing signs of recovery.
He further explained that the government has developed broader economic measures designed to manage external risks such as tighter sanctions, global trade disruptions, and geopolitical instability. These initiatives reportedly include expanded support for large-scale investment projects and the establishment of special economic zones aimed at stimulating regional development.
Additional policy efforts are focused on improving labor productivity through technological adoption, including artificial intelligence and automation. Authorities are also seeking to expand workforce participation through training schemes, internships, and short-term skill programs.
According to the minister, a coordinated approach between fiscal and monetary policy is expected to support a gradual easing of inflationary pressures, with projections indicating inflation could fall to around 5.2% by the end of 2026.
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