Novak, Siluanov comment on Russia’s GDP growth, additional support for regions

MOSCOW, August 19. /TASS/. The Russian economy has delivered GDP growth of 10% over the past three years despite external pressure, Russian Deputy Prime Minister Alexander Novak said at a meeting of the Council for Strategic Development and National Projects.

Russian Finance Minister Anton Siluanov, in turn, said that regional fiscal recovery measures would have a budgetary impact of 800 bln rubles ($9.43 bln) in 2027.

TASS has compiled the key statements on the economic situation in Russia.

Novak said that Russia’s key task is to transition to a sustainable economic development model, and that the structural transformation plan is aimed at achieving this goal. The plan "envisages transforming the structure of the economy in such key areas as investment, the labor market, income and consumption, technological development, foreign trade, and formalization of the economy."

The deputy prime minister described "attracting additional investment to the stock market" as a separate priority: "We are creating conditions to encourage individuals to invest their funds in the stock market, as well as to promote more corporate offerings and equity financing as an alternative to costly borrowing. To this end, the government drafted and submitted to the State Duma this year a bill on investment partnerships, which has already passed its first reading."

"Over the past three years, Russia’s GDP has increased by more than 10% in real terms, representing growth of around 3.3% per year, above the global average," Novak stressed, adding that Russia is now the world’s fourth-largest economy in terms of purchasing power parity.

The Russian economy has shifted toward the domestic market, while the share of exports has declined, the deputy prime minister noted: "Over the past five years, the structure of economic growth has changed. In particular, the share of net exports in the economy has fallen almost threefold, and the economy has essentially shifted toward the domestic market." Novak also said that investment had increased, with its share "reaching 23.3% last year."

The Russian government is working on a strategy to platformize all sectors of the economy, with "special attention" being paid to consumer industries.

Tourism’s share of the Russian economy should rise to 5% by 2030, while the share of creative industries should increase to 6%, the deputy prime minister said: "And we are already seeing the share of these industries, their share in the economy, increase every year."

Novak described increased financing from domestic sources as the key structural shift in the Russian economy: "The key structural shift is that we have begun financing more investment from domestic sources, replacing external financing.