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Putin refused to believe in the collapse of the Russian economy

While the government predicts the longest recession since the 1990s for the Russian economy, international institutions predict a GDP collapse comparable to the consequences of the collapse of the USSR, and Western companies leave en masse, leaving plants and factories without components and technologies, Russian President Vladimir Putin is confident that the worst is over .

“Our country has gigantic potential,” Putin said Friday, speaking at the St. Petersburg International Economic Forum, which in the past brought together top managers of Western corporations and this year saw guests from the DPR, LPR and the Taliban terrorist movement.

“It was not possible to crush the Russian economy with a swoop, with a swoop, due to the destruction of business chains, the forced recall of Western companies from the Russian market, the freezing of domestic assets, to hit industry, finance, and the standard of living of people <...> failed,” Putin said.

“We are normalizing the economic situation step by step,” he continued. — First, we stabilized the financial markets, the banking system and the trading network. Then they began to saturate the economy with liquidity and working capital to maintain the stability of enterprises and companies, employment and jobs.

Gloomy forecasts about the future of the Russian economy and “spells about the dollar for 200 rubles,” according to Putin, were “a weapon of information warfare, a factor of psychological impact on Russian society.” But inflation has “stabilized”, the budget is in surplus, and Russians have “showed unity,” he said.

The sanctions blitzkrieg, according to Putin, turned against Western countries. Europe will lose 400 billion euros and face a change of elites, inflation in the United States will be a record for 40 years, and the countries of the world will begin to dump trillions of dollars and euros from reserves in the coming years, replacing them with commodities, the president shared his vision of the situation.

For a beautiful future to become a reality, according to Putin, the main thing is to believe. “We must believe in our own strength – this is very important. We are strong people and we can cope with any challenge,” the president said.

Russia’s GDP will fall by 7.8% this year and another 0.7% next year, according to the government’s official forecast, wiping out 10 years of economic growth. The real incomes of Russians will fall by 6.8% – the most since 1999 – with inflation at 17%, a record for 20 years. The volume of investments will collapse by 19.4%, destroying at once all the investments made in the economy over the past 14 years.

International institutions paint an even bleaker picture: the IMF expects Russia’s GDP to fall by 8.5% this year and 2.3% next; Institute of International Finance – by 15%, a record high since the collapse of the USSR.

At the end of May, according to indirect data from the federal budget, Russia lost about half of the supply of goods from abroad (treasury revenues from import taxes collapsed by 43%). Imports from Germany, Japan, South Korea collapsed by 3-4 times, and from China – by half. Of the 20 car factories that worked in Russia before the war, 18 stood up, and the rest are trying to establish the production of cars without airbags.


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