Russian economy back on track – Putin

The economic situation in Russia has stabilized, President Putin said at a plenary session of the Eastern Economic Forum (EEF) on Wednesday.

“I would like to note that we believe, both in the government and in the presidential administration, our experts believe that the peak, the most difficult period [for the country's economy], has passed. The situation is normalizing, and macroeconomic indicators speak of this,” Putin said.

The president indicated that this year’s budget will be in surplus, explaining: “Our state finances have stabilized, I want to note that this year's budget will be drawn up with a surplus of almost half a trillion rubles, somewhere under 485 billion rubles (almost $8 billion), despite all the gloomy forecasts.”

According to the Russian president, annual inflation in the country is on a downward trend. “I think that according to the results for the year, we will have [inflation] somewhere around 12%, and according to many of our experts, in the first quarter or by the second quarter of next year, we will most likely reach the target indicators - 5% or 6%, and some even project that the level of 4% may be in reach,” Putin said.

The government will do everything to support prices and suppress inflation, the Russian president stressed. Putin pointed out that the ruble and financial markets have also stabilized, while the unemployment rate has reached a historic low of less than 4%.