Russia's GDP grew by 5% in the first five months of 2024, significantly higher than forecast, Russian Prime Minister Mikhail Mishustin said at a meeting on economic issues on July 12.
He said that the growth momentum remains high. In May, growth increased slightly compared to April to 4.5%. And if statistics are taken for 5 months, GDP increased by 5% compared to the same period in 2023. This increase is higher than forecast, despite the moves to hinder and blockade from outside the Russian economy.
According to Mr. Mishustin, the figures in the real economy are also positive. From January to May, the manufacturing sector grew by almost 9%. He cited machine building as one of the key drivers in this sector with double-digit growth. The Russian Prime Minister stressed that it is very important that investments continue to increase, laying a good foundation for the future. At the end of the first quarter, investments increased by almost 15%, mainly in the fields of machinery, equipment, intellectual property. In addition, according to him, the regions have become more active in investing in the development of companies.
The head of the Russian government added that consumer activity is at a very high level, mainly due to the increase in people's incomes. However, this also leads to an increase in inflation. Specifically, from the beginning of the year to July 1, inflation increased by 4.5%. He stressed that the problem of inflation must be constantly solved because people's living standards depend on it. He asked to closely monitor the macroeconomic situation and, if necessary, to immediately adjust the action plan on inflation in coordination with the Central Bank of Russia.
In another related development, Kremlin spokesman Dmitry Peskov said on July 12 that Russia does not rule out any scenario of resuming the Black Sea grain deal. He stressed that Russian President Vladimir Putin has repeatedly affirmed his readiness for dialogue. However, any grain agreement must be reached within the framework of a package of issues in the context of the general situation.
Mr. Peskov's statement came in the context that on July 11, Turkish President Tayyip Erdogan discussed with Ukrainian President Volodymyr Zelensky about maritime security in the Black Sea, including the grain deal.
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