In 2024, Russia's economy shows robust growth, surpassing expectations with a 5% GDP increase in the first five months.
Prime Minister Mikhail Mishustin highlighted this progress, noting a slight acceleration in growth to 4.5% in May. The manufacturing sector, driven largely by machine building, expanded by nearly 9%, supported by a 15% rise in investments in machinery, equipment, and intellectual property by the end of the first quarter.
Companies are reinvesting profits, and regional investments are intensifying, contributing to long-term economic stability, according to Mishustin. Despite strong consumer activity bolstered by rising incomes, inflation reached 4.5% by July 1, prompting close monitoring in collaboration with the Bank of Russia.
Russia’s oil revenue surged nearly 50% in June 2024 compared to the previous year, attributed to successful adaptations to Western sanctions, particularly with its flagship Urals crude oil. Moscow’s oil-related tax revenues also saw a substantial increase, reaching 590.6 billion rubles from 402 billion rubles in June 2023.
President Vladimir Putin recently approved tax amendments aimed at fostering a balanced tax system, following a budget deficit in 2023 amounting to around 3.2 trillion rubles or 2% of GDP. These changes were passed by Russia’s parliament earlier this week under Finance Minister Anton Siluanov’s guidance to ensure fairness.
Federal Reserve Chair Jerome Powell is taking the stage with his speech at the highly anticipated Jackson Hole Economic Symposium at the moment.
Speculation is mounting that the European Central Bank (ECB) might lower interest rates next month, with September becoming a critical point of focus.
Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad, recently took to X to express concerns over the United States’ rapidly growing national debt.
Billionaire Peter Thiel has suggested several concrete approaches for the US government to address its significant budget deficit.