The meeting was attended by Prime Minister Mikhail Mishustin, First Deputy Prime Minister Denis Manturov, Deputy Prime Minister and Chief of the Government Staff Dmitry Grigorenko, Deputy Prime Ministers Tatyana Golikova, Alexander Novak, and Marat Khusnullin, Deputy Chief of the Presidential Executive Office Maxim Oreshkin, Finance Minister Anton Siluanov, Energy Minister Sergei Tsivilev, Central Bank Governor Elvira Nabiullina, Head of the Federal Taxation Service Daniil Egorov, Head of the Federal Customs Service Valery Pikalyov, and Chairman of PSB Bank Pyotr Fradkov.
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President of Russia Vladimir Putin: Good afternoon, colleagues.
We continue our series of meetings on the current state of the country’s economy, its key sectors, and the public finance system. At the same time, I believe it is essential to keep focusing our efforts on developing specific measures to stimulate growth and on crafting effective responses to the trends that have been emerging recently.
Statistics show that economic growth has, unfortunately, been slowing for two consecutive months. Overall, GDP contracted by 1.8 percent between January and February. Manufacturing and industrial production as a whole have suffered losses, as has construction, a strategically important sector.
Yes, experts point to calendar effects, weather conditions, and seasonal factors as the reasons for this negative performance. As I mentioned at our last meeting, we are fully aware that in January this year there were two fewer working days than last year, and in February, one fewer. These are, of course, objective circumstances, but it is clear that they are far from the only factors shaping business and investment activity in the country.
I expect to hear detailed reports today on the current economic situation and on why the trajectory of macroeconomic indicators is currently falling short of expectations. This is not only below experts and analysts’ expectations, but also below the Government’s own forecasts and those of the Central Bank.
As I have already said, I look forward to hearing proposals for additional measures aimed at restoring growth in the domestic economy, supporting business initiatives, and improving the employment structure in favour of industries with more productive jobs that generate high added value.
In this connection, I note that despite the overall economic momentum, the unemployment rate remains low. It currently stands at 2.1 percent. This, among other things, suggests that our labour market is changing, with flexible, platform-based employment on the rise.
These and other objectives are reflected in the Plan for Structural Transformation of the Russian Economy. The Government prepared it last year and has begun implementing it. Today, we will discuss how this plan is being put into practice and what might need to be clarified, added, supplemented, or strengthened in light of the current situation.
We will also discuss the state of public finances separately. We have repeatedly emphasised the importance of maintaining a balanced budget, preserving its sustainability and its focus on development, including in the face of sharp fluctuations in foreign markets. We are monitoring this closely and observing what is happening. The Government has prepared appropriate measures. We will discuss them today.
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