(News 24h) – Mr. Putin said that low inflation and high gold reserves show that the Russian economy is recovering.
Russian President Vladimir Putin recently appeared in an interview on Rossiya 24 television channel, expressing optimism on the upcoming Russian economic signals.
|Actively reserve gold in the context of COVID-19, Russia self-stabilizes its economy.|
Accordingly, he said, the country overcame the peak of economic problems caused by the COVID-19 pandemic, paving the way for an economic recovery next year.
The President said that the country’s key macroeconomic indicators are stabilizing, despite the consequences of the pandemic crisis.
According to Putin, low inflation and rising gold reserves have provided more evidence that the national economy is on the verge of a recovery.
“We believe the peak issues are over and I hope we will slowly begin to recover …
We are not much different from other countries in the world – I think the recovery will be guaranteed next year “- President Putin stressed.
Analysts now predict the Russian economy will shrink by 5-6% instead of 8%, according to observers, Putin said. A decline of 5-6% is an expected decline in the global economy.
According to Putin, this is the result of timely action by the government to limit the problems from the crisis.
Despite economic difficulties, Russia still increased its gold and foreign currency reserves. According to the most recent data, the Central Bank currently has $ 590.2 billion in foreign exchange reserves.
“They create an additional safety net … They are not the panacea for all diseases but it is very important” – Mr. Putin added that the foreign exchange reserves bring to the Government the belief that they can cover their budgeting needs and fulfill social obligations.
In fact, despite the global pandemic raging and oil prices falling, Russia’s gold and foreign exchange reserves have reached all-time highs.
According to the Central Bank of Russia, from January to August, the price of gold increased from 1.5 to 2 thousand USD / ounce, thus Russia’s international reserves increased to 600 billion USD. Thus, the historical record of 2008 was broken.
Just before the global financial crisis, or the ‘Great Depression’ of 2008, Russia’s funds began to dry up rapidly due to the economic crisis and lost more than $ 100 billion in value within three months. .
But in recent years, Moscow has been aggressively de-dollarizing and concentrating instead on hoarding gold, euros and yuan.
Finance Minister Anton Siluanov explained that Russia’s finances “demonstrate a high level of stability in the economy”. He added that the international rating agencies have placed Russia’s credit rating at investment level.
Fitch has confirmed Russia’s long-term credit score at BBB. The forecast is still stable. Meanwhile, S&P Global Ratings has approved Russia’s long-term foreign currency rating at BBB- with a stable outlook. Long-term local currency rating remains at BBB.