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Updated December 28th, 2022 at 05:53 IST

As war rages on, Russia warns 2023 'will be challenging' for economy, finance

Belousov had described economic shock as "perfect storm," adding that Russia’s gross domestic produce would fall by “a little more than 2 percent” in 2022.

Zaini Majeed
Russia
IMAGE: AP | Image:self
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Russia's First Deputy Prime Minister Andrey Belousov on Tuesday claimed that the year 2023 "will be fairly challenging" for the country's economy in terms of finance and the deficit budget. In 2022, the Russian economy contracted by less than 3% due to a “special military operation” in Ukraine but the upcoming year is expected to be more challenging, he noted.

In an interview with the Rossiya-24 TV Channel, Russia's First Deputy Prime Minister said that the Ministry of Economic Development has been working on GDP incremental growth rates across major projects to curb the economic ripples that he previously claimed were going to be felt across the globe.

Belousov had described the economic shock as the "perfect storm," adding that Russia’s gross domestic product would fall by “a little more than 2 percent” and a decline of “no more than 1 percent” in 2023. "The next year will be rather tough for us in terms of finance. That is, we set the deficit budget for the next year; we understand the amounts of borrowing," the Russian official predicted. Furthermore, he continued, "all of that was agreed with the Bank of Russia." 

"This task, this financial framework - it exists, and [it] exists in a fairly rigid format. This rigid format anticipates strict prioritization of expenses and projects," Belousov stressed in an interview.  "The Ministry of Economic Development has recently completed this effort, distributing GDP incremental growth rates across major projects in place," the official added.

World 'about to enter a period of tremendous shocks in 2023': Belousov

During the Asia-Pacific Economic Cooperation (APEC) summit is being held in Bangkok, Thailand in November this year, Russian First Deputy Prime Minister claimed that the world is about to enter a period of tremendous shocks in 2023, made worse by the unresolved technical issues.

"Now we are only beginning to understand the severity of the problems that the world is facing. The fact is that the next few years are a period of a perfect storm, when negative trends that have been accumulating for a long time converge for a limited time period," Belousov told reporters on the sidelines of the summit.

He blamed the economic crisis on the West's efforts to sanction Russia. The world, he asserted, "is beginning to understand that efforts to isolate Russia only serve to exacerbate the global economic challenges." 

Russia's President Vladimir Putin had also earlier stated that the West had triggered a global economic crisis and "a wave of ruinous inflation" by imposing a barrage of economic and trade sanctions on Russia in recent history in response to its military intervention in Ukraine. 

“The blame for this lies entirely with the elites of Western countries who are ready to sacrifice the rest of the world to maintain their global dominance,” Putin had said at a televised government meeting on the economy. 

“Russia is confidently coping with external challenges thanks to both the responsible macroeconomic policies of recent years and systemic decisions to strengthen economic sovereignty, technological and food security," Putin had further maintained, labelling Moscow as the world’s biggest producer of natural resources. 

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Published December 28th, 2022 at 05:53 IST

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