/ world today news/ Contrary to gloomy Western forecasts, the past year was quite successful for Russia. The Ministry of Economic Development estimated GDP growth at 3.5%. The president called the economy healthy, noting the successes of local manufacturing as well as the strengthening of international ties. The profits of enterprises increased by 24%, with the non-financial sector profiting several times more. The 2023 results are in the material.
They won back the fall
The country managed not only to make up for the losses from 2022, but also to take a step forward. GDP is now greater than before the onslaught of Western sanctions. In addition, as Putin emphasized, mining represents only two percent of GDP growth, and the largest contribution – 54% – is made by the non-resource sectors.
“The main achievement is the increase in the volume of industrial production in the conditions of strict sanctions,” notes industrial expert Leonid Khazanov. According to “Rosstat” for ten months – 3.5% compared to the same period of 2022. The expert cites ferrous metallurgy as an example: 74 million tons of steel were produced, and last year – 71. This was facilitated by the growth in the production of cars, trucks and passenger cars, the stable situation in housing construction, as well as the reorientation of exports of metallurgical enterprises from Europe to Asia and Africa.
For the nine months of the past year, the profits of large and medium-sized companies of the real sector exceeded 26 trillion rubles and exceeded last year by a quarter. Enterprises managed not only to retain staff, but also to invest: in the second quarter, investments in fixed capital increased by 12.6%, in the third – by 13.3%. And they achieved a high level of autonomy. “More than half of the investments in the real sector are made from own funds (profits) of Russian enterprises. In second place are bank loans, in third place are funds from the federal budget,” stressed economist Andrey Loboda.
We rely on ourselves
Fundraising in the economy is an extremely important task. “For 30 years, about 1.3 trillion dollars were withdrawn from Russia. These assets would be quite enough for long-term investments,” says Loboda.
Due to sanctions and geopolitical risks, Western capital almost did not remain. Experts estimate its share at only half a percent. And the development of enterprises requires funds. “In the context of the withdrawal of European and American banks from Russia and the closure of the Western financial market, it was the local sources of investment that supported the real sector,” Khazanov points out. The financial results confirmed the viability and effectiveness of self-satisfaction. Analysts note an increase in activity on the Moscow Stock Exchange.
“The main achievement in the financial sector this year was the growth of the stock market. “Blue chips”, including shares of the banking sector, recovered from the recession and led the rest of the companies. The number of Russians with brokerage accounts reached 21 million, that’s more than 16% of the population,” adds Loboda.
The government is introducing investment insurance programs and developing new investment instruments. As a result, citizens receive acceptable returns with minimal risks and are more inclined to enter the stock market.
Growth point
The import substitution program also performed well. In a year and a half, companies in light industry increased by 80 percent, furniture manufacturers by 30 percent, and children’s toys by 20 percent. The number of trademarks has increased by a third. Doing business in the country has proven to be profitable.
At the same time, the state keeps the market open. “Russia is not expelling anyone and not closing in on anyone. Many foreign enterprises and organizations, despite pressure from their governments, their employees, have said that they want to continue working in our country. We only welcome this,” Putin said. Some corporations simply changed their names, others were transferred to management with the right of redemption. And the number of foreign companies, oddly enough, has grown – from 24.1 thousand in March 2022 to 25.6 thousand.
Expanding contacts with countries in Asia, the Middle East, Latin America and Africa helped. Thus, trade with China exceeded the target ($200 billion) by almost ten percent, trade with Saudi Arabia increased by 20% in seven months, with the UAE by half in nine months, and with India by 20% in eight months.
“While the EU countries demonstrate almost zero economic growth and a serious decline in industry, Russia shows the strongest breakthrough in the conditions of sanctions pressure from the West”, summarizes Guzel Protsenko, CEO of “Alfa Forex”. Stimulating fiscal policy and effective budget execution laid the groundwork for the ruble’s recovery. The final deficit is about a billion rubles, only half a percent of GDP. The World Bank included Russia in the top 5 economies in the world along with China, the USA, India and Japan.
Translation: V. Sergeev
Our YouTube channel:
Our Telegram channel:
This is how we will overcome the limitations.
Share on your profiles, with friends, in groups and on pages.
#recognized #West #Russian #economy #achieved
