Page 115 - RusRPTJun24

RUB6.58 trillion ($84bn) and RUB4.7 trillion ($75bn) in 2022.
The danger the Russian economy faces is long-term stagnation. As a lot of civilian production has been switched to military output and capacity utilisation is already at a record high of 81%, at some point post-war this non-productive production will have to be switched back to civilian output.
The investments into the National Projects are intended to start this process now and support pro-growth sectors like construction, to soften the pain of that transition. In general, Putin is also keen to keep life at home as normal as possible to head off any potential protests against the war and its cost to the Russian economy in order to keep his grip on power. Everyday life in Russia has so far been largely unchanged by the war in Ukraine and indeed with nominal wages rising much faster than inflation real incomes have been rising that has been fuelling a consumption boom.
President Vladimir Putin has issued a decree mandating the Russian government to ensure the country’s economic, social and technological development in seven key areas.
The objectives for the next six to 12 years were signed by the Russian leader on Tuesday, after he was inaugurated for his fifth term in office. The planning period covers the next two presidential terms.
The targets are grouped into health and demographics, realizing citizens’ talent, quality of life, environmental goals, economy, technological leadership, and digital transformation.
The underlying intention is to ensure Russia’s position as a sovereign nation that respects traditional values, engages with friendly nations, and improves its economic stance through science and private entrepreneurship, the document states.
The specific goals set by Putin include Russia having the fourth-highest gross domestic product (GDP) in the world by 2030 measured by purchasing power. By then, the value of imported goods and services should amount to roughly 17% of Russian GDP. Its exports should shift away from energy products, with agriculture considered a significant driver of future foreign trade.
In six years, Russia should also be among the top 25 nations in terms of using robotics in manufacturing, and in the top ten producers of scientific knowledge, according to the plan.
Putin also wants citizens to enjoy better economic equality, with the Gini coefficient – a national wealth inequality metric – set to fall to 0.37 by 2030 and 0.33 by 2036. Last year, it was estimated at 0.40, according to national statistics.
115 RUSSIA Country Report June 2024 www.intellinews.com