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Pessimists were wrong: the government told how much the Russian economy will fall in 2022

Russian Prime Minister Mikhail Mishustin at a meeting on economic issues at the Russian government's Coordination Center.  Photo: Dmitry Astakhov/POOL/TASS

Russian Prime Minister Mikhail Mishustin at a meeting on economic issues at the Russian government’s Coordination Center. Photo: Dmitry Astakhov/POOL/TASS

The pessimists were wrong in their predictions: the Russian economy did not collapse and the results for the year will turn out to be much better than expected. Prime Minister MIkhail Mishustin at the economic meeting on Wednesday.

According to the Prime Minister, the reduction GDP Russia at the end of the year may be less than 3%. But some experts were predicting near-double-digit numbers of a potential drop. The Prime Minister explained that the slowdown in the development of the Russian economy was unavoidable under the current circumstances and that time was needed for restructuring.

– Data on gross domestic product is now much better compared to the forecasts in the first half of the year, – said the prime minister.

Another important indicator is inflation. This year’s price increase hit Russians’ wallets. Nevertheless, Mishustin noted, inflation in Russia will be lower this year than in many European countries. By mid-November, annual inflation had already fallen to 12.4%. Recall that according to the Central Bank’s projections, inflation in Russia in 2022 could initially reach 14-17%. Admittedly, later the Central Bank lowered the forecast to 12-15%.

Mishustin urged to be more careful in making economic forecasts and to analyze all scenarios for the development of events, taking into account the further intensification of the global crisis and sanctions. In other words, the government is in no hurry to paint everything pink.

According to the prime minister, the fall in Russian GDP could be less than 3% by the end of the year.  Photo: Dmitry Astakhov/POOL/TASS

According to the prime minister, the fall in Russian GDP could be less than 3% by the end of the year. Photo: Dmitry Astakhov/POOL/TASS

– It is necessary to respond appropriately, work out solutions and prepare responses, analyzing all possible risk scenarios, – said the Prime Minister.

Mishustin also noted that unemployment in the country remains low. And this despite the departure of many Western companies from Russia. According to the prime minister, the unemployment rate was below 4% in September.

– This was achieved thanks to the measures ordered by the President, including preventive measures to support employment, – said the Prime Minister.

At the same time, Mishustin warned that there would be changes in the labor market associated with the restructuring of the economy.

– In many areas there is a shortage of personnel. It is necessary to take concrete decisions to eliminate this shortfall and to ensure market flexibility, said the prime minister.

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org