Russian Economy Growing Faster. Putin Meets Business Leaders
Today, in the Kremlin, Vladimir Putin gathered leaders of the largest domestic companies, banks, and public organizations. The major issue discussed was the economy, its current state and trends. Putin says that the country's GDP is growing twice as fast as official forecasts, including because of manufacturing. Alexey Petrov is reporting.
Famous businessmen and top managers are at a meeting in the Kremlin. Here the captains of domestic business are talking on the sidelines. There are more than 50 names on the list. They are the leaders of the largest banks and companies. Besides, specialized ministers and the Central Bank chairman have been invited, too.
It was clear that the talk about the economic situation would be substantive and detailed. Unexpectedly, the conversation begins with a festive note.
- Let's congratulate the CEO of VTB, Andrey Leonidovich Kostin, on his birthday. We wish you all the best. I'd like to present you chimes. Modest enough, but this is what it's called — chimes.
- Thank you.
- Thank you.
The President notes that such meetings aren't held frequently, but regularly. It's a good opportunity to compare notes. Contrary to the skeptics' forecasts, the Russian economy is growing. Despite known limitations, including external restrictions, the Russian economy is stabilizing.
As you know, it is perfectly obvious that it has overcome the recession, is gaining momentum, and has been growing for several quarters running. As you also know, we planned a fairly modest growth of about 0.8%. In the first quarter of the year the GDP increased by 0.5%, but it has already gone up by 2.5% in the second quarter, with investments increasing by 6.3%, which is the highest since the second quarter of 2012.
Naturally, it provides a good foundation for future development. It is important to maintain these positive trends. This is actually what I would like to discuss with you. Considering that external restrictions still exist and they could be expanded.
Investor activity only demonstrates once again the futility of sanctions. Industry is gaining momentum. Domestic semiconductor devices are gaining ground on the market. The production of harvesters has increased by almost a third. And the production of cars has soared by about 20%.
Moreover, the production rail cars has grown by 80%, which is a record statistic. Another important indicator of a healthy economy is that people's incomes aren't eaten by inflation anymore.
Inflation is fairly low, less than 4%, which I would call the lowest in history. Industrial production is growing by almost 2%. And the growth in some sectors looks very impressive. Figures show that business leaders have no doubts about the sustainability of the Russian economy.
Alexey Petrov, Alexandra Terpugova, Andrey Melnikov, Sergey Rubanov, Yury Lebedev and Vadim Klevanov for Vesti.