Russian people's living standards improved during President Putin's terms

Russian President Putin said the country's economy grew 3.2% in the first 10 months of 2023 and will reach 3.5% growth by the end of this year.

Chuyên gia kinh tế: Mức sống của người dân Nga được cải thiện trong các nhiệm kỳ của Tổng thống Putin

During President Putin's tenure, real incomes of Russians have increased steadily, although they have slowed in recent years due to the impact of Western sanctions. (Source: Getty Images)

Recently, Mr. Vladimir Putin announced that he will run for re-election as President of Russia for the next term. Assessing President Putin's time in power, economic experts say that Russian people have enjoyed an increased standard of living, along with many improvements in the economy, trade and society.

Compared to the 1990s, when Russia was going through a period of turmoil after the collapse of the former Soviet Union, the incomes of millions of its people have improved, helping to increase purchasing power, thereby promoting economic recovery.

In the early years of his presidency, high oil prices — Russia's main export — were a lever that helped Mr. Putin boost his standing.

During this period, the Ruble traded largely stable thanks to high export prices, which helped reduce the cost of imported goods for the people and created a basis for economic growth.

However, since the 2008 financial crisis, Russia has struggled with the devaluation of the ruble. In recent years, especially, the devaluation of the domestic currency combined with high inflation has caused the Russian economy to move from stable growth to a period of stagnation.

Despite this, real incomes of Russians have continued to increase steadily, although they have slowed in recent years due to the impact of Western sanctions.

In 2022, real wages in Russia increased by 7%, while the budget deficit fell to 0.5% of Gross Domestic Product (GDP), down from 2.1% of GDP in 2022.

In a speech at the Russia Calling Forum, organized by VTB Bank on December 7, Russian President Putin said that the country's economy grew by 3.2% in the first 10 months of 2023 and will reach 3.5% growth by the end of this year. This growth rate exceeds the figure recorded before the Russia-Ukraine conflict.

Mr. Putin also pointed out that, in terms of growth rate, Russia is currently ahead of all leading countries of the European Union (EU).

He stressed that the country's economic policy is on the right track and that Russia is actively developing the domestic market, domestic business activity is growing and banks are operating "stable and sustainable".

Source