Russian economy on the brink of recession: Notable statement from Minister Reshetnikov

Speaking at the “Proposals for the Economy” panel held at the St. Petersburg International Economic Forum (SPIEF), Maxim Reshetnikov stated that the Russian economy performed strongly in the first quarter of the year, but the growth rate of investments has slowed down.

Reshetnikov said, “Current interest rates make it seriously difficult not only to start new projects with credit but also to invest in funds.”

Emphasizing that high interest rates are causing a cooling in the economy, Minister Reshetnikov stated, “When we look at the numbers, there is a cooling, but these data are retrospective. Currently, the state of the business world and the indicators suggest to me that we are very close to a recession.”

Underlining that his statement was not a forecast, Reshetnikov said, “I just think we are on the border of a recession. The process from here on will be shaped depending on the decisions we make.”

On the other hand, the Central Bank of Russia, at its meeting held on June 6, lowered the policy rate for the first time since September 2022, reducing it from 21 percent to 20 percent.

News Source: 12punto