Russian First Deputy Prime Minister Andrei Belousov announced two ways to combat overheating of the domestic economy: increasing production and restricting demand. This is his opinion expressed In an interview with Kommersant newspaper.
“And if we are going to try to constrain demand, we need to avoid a hard landing (a halt to growth in the first quarter of 2024 and a GDP growth rate of around 0.5-1.5% by the end of the year).” emphasized the first vice president of the government.
According to him, due to a hard landing, import substitution investments may decrease and, as a result, prices of foreign goods in Russia may begin to increase.
The soft exit path is, first of all, to support import substitution and support Russia’s redirection of supplies to new markets that have emerged this year, “at least to preserve it.” Giving an example of preferential loan programs for small and medium-sized enterprises launched on the initiative of the Central Bank of the Russian Federation, he expressed his hope that similar conditions will be created for exports.
On December 15, the Central Bank of the Russian Federation raised the interest rate to 16% for the fifth consecutive time. explained The decision includes the overheating of the national economy, as well as the fact that the inflation expectations of the population and the price expectations of enterprises continue to rise.
An economy is overheating when it grows faster than it could.
Belousov before named One of the main threats to the Russian economy.