Page 44 - Russia OUTLOOK 2024

subsidises loans, the longer the Central Bank will have to maintain a high interest rate.
Finance Minister Anton Siluanov elegantly signalled his support for Nabiullina and officially announced the government's proposal to increase the down payment threshold for subsidised mortgages to 30%.
However, this measure does not solve the problem of unequal access. Now, lucky individuals with subsidised mortgages will be subsidised through taxes not only by those who are ineligible due to family composition or occupation but also by those theoretically eligible but lacking the funds for a down payment.
The Kremlin remains keen on the subsidised mortgage programme, as it is an indirect means of stimulating the economy; money going into construction is a major growth driver providing work for many lower class citizens and also bolstering the banking sector, which benefits from the increased loans volumes. Mortgage lending is booming. (chart)
• 2.4 Unemployment
The unemployment rate fell to a historical low of 2.9% in October and has
remained there since.
Analysts have lowered the unemployment forecast for 2023, 2024 and 2025 by 0.1-0.2 pp to 3.0%, 3.0% and 3.1% respectively. According to their expectations, the unemployment rate will rise to 3.2% by the end of the forecast horizon, according to the CBR’s December macroeconomic survey
44 Russia OUTLOOK 2024 www.intellinews.com