Mikhail Mishustin: “The main macroeconomic indicator, GDP, has maintained positive dynamics despite arising challenges. I would like to remind you that the Economic Development Ministry has assessed its growth in the first seven months at 1.1 percent.”
Mikhail Mishustin’s opening remarks:
Mikhail Mishustin chairs a meeting on economic issues
Mikhail Mishustin chairs a meeting on economic issues
Mikhail Mishustin chairs a meeting on economic issues
Mikhail Mishustin chairs a meeting on economic issues
Good afternoon, colleagues.
Today, we will discuss a number of economic issues, first of all, returning the economy to a balanced growth trajectory and decreasing the inflation rate. It is the key task when preparing a budget for the next three years. This work is underway in the Government based on the President’s instructions and jointly with the Bank of Russia and representatives of the Federal Assembly, as well as our expert, scientific and business communities.
The main macroeconomic indicator, GDP, has maintained positive dynamics despite arising challenges. I would like to remind you that the Economic Development Ministry has assessed its growth in the first seven months at 1.1 percent
A slowdown of economic growth was to be expected after the high figures reported in 2023 and 2024, and we forecast this. The period of our first anti-crisis solutions is over. A number of vacant niches have been quickly filled thanks to a rapid growth of domestic production. The Government is now advocating the development of long-term trends in accordance with the tasks set for us by the President for the period until and after 2030.
We continue to restructure our economy. Businesses are reshaping their trade operations based on new realities, adjusting to changing conditions and looking for new partners and new raw materials and sales markets.
We also continue creating the basis for strengthening the technological and industrial sovereignty of our country. Major projects that call for smooth operation and serious resources are being launched across the country.
Manufacturing remains the growth engine in industry. It has grown by 3.3 percent in January to July, 2025. The leading sector in this regard is machine-building, where the share of added value is especially high. Its reported growth is 10 percent. The metallurgical and chemical sectors have also reported growth.
The general trend has been supported by the construction sector, which reported a growth of 4.2 percent, and by agriculture.
Overall, our industrial production has grown by approximately 1 percent in the first six months of the year.
Now let us look at inflation. The expansion of Russian capacities and a number of price containment decisions adopted by the Government and the Bank of Russia have made it possible to achieve a gradual deceleration of its dynamics. In late August, fruit and vegetable prices declined more rapidly, while the prices of milk and milk products climbed to their previous level.
Positive trends persist on the labour market. The unemployment level has remained at its all-time low of 2.2 percent for three months at a stretch.
Colleagues, the budget is an important topic. The Government must submit its draft to the State Duma before October 1. It should take into account all current challenges. We discussed these in detail as we worked on the forecast of [this country’s] socioeconomic development for the period until 2028. The Budget Commission is to convene soon, which will have to approve all the main parameters. I am referring to incomes and expenditures. This done, the draft budget will be presented to the Government of the Russian Federation at its meeting.
Our absolute priorities are ensuring macroeconomic stability and the balance of this country’s principal financial document and meeting our social obligations. Plus achieving the national development goals outlined by the President.
Today, we once again will see what resources should be assigned to deal with these matters, as well as to incentivise industries, support regions, and implement technological and infrastructural projects.
The President noted that we should focus on creating additional income sources. Considering current realities, it is necessary to concentrate on effectiveness, including on raising labour productivity. We should accelerate its growth in every way by continuing to remove system-wide barriers to business initiative, reduce excessive administrative pressure, and create incentives for independent development based on companies’ own intra-corporate programmes.
Achieving a higher quality of investment climate is a key task in the context of further change. We plan to implement this through the national model of business target conditions. The Government is working on a plan of structural change, which is also meant to boost effectiveness.
