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According to RT (Russia), Ms. Nabiullina emphasized that many areas of the Russian economy are witnessing stable growth. Specifically, official statistics for April showed that business activity in many key sectors of the Russian economy - including manufacturing, construction, retail, services and public catering - increased. chief.
The Governor of the Central Bank of Russia noted that the business environment index is near a 10-year high.
“Domestic tourism is becoming one of the new growth engines in the changing situation. Many regions have seen the expansion of the machine building sector. Siberia's production of non-ferrous metals and chemicals is increasing. Central Russia and the Urals have increased ferrous metal production. Several other industries also reported output recovering back to the end of 2021 levels,” argued Nabiullina.
According to her, economic trends are improving largely due to the recovery of domestic demand. This demand is rapidly replacing the share of exports in the structure of the economy.
“This is an important structural change. Considering the gradual replacement of external demand with domestic demand, we forecast that the Russian economy will recover to pre-crisis levels next year," she predicted.
The official also reiterated the plan to bring domestic inflation back to the target level by 2024 and maintain it at the target level in the future.
However, in the face of increasing inflationary pressure, Ms. Nabiullina acknowledged the possibility that the CBR might have to raise the base interest rate right at the next meeting to curb inflation. The rate of the main rate hike will depend on the risk estimate to achieve the target of returning to 4% by 2024.
Meanwhile, on June 9, CBR decided to keep the base interest rate unchanged for the sixth consecutive session, at 6% per year. The CBR noted that domestic economic activity is growing faster than previously anticipated. The agency also forecasts that Russia's economy will grow by up to 7,5% this year.
