The Russian economy's growth is attributed to the adaptation of businesses to external pressures and the diversification of supply chains, which has helped mitigate the impact of sanctions.
The government's demographic initiatives aim to reverse declining birth rates, but their success hinges on improving living conditions and addressing economic uncertainties faced by families.
The response to preferential mortgage issues indicates a proactive approach by the government to ensure that financial support reaches families effectively.
If current economic trends continue, Russia may maintain a positive GDP growth rate in the coming years, although a slowdown to around 2-2.5% is anticipated as inflation is addressed.
The effectiveness of government programs aimed at increasing the birth rate may lead to a gradual recovery in demographic trends, contingent on economic stability and social support.
With adjustments to mortgage policies, there could be an increase in home ownership among families, potentially improving overall living standards.
The Russian economy has shown resilience and growth in 2024, according to President Vladimir Putin, who highlighted a projected GDP increase of 3.9-4% by year-end. This growth contrasts with stagnation in Western economies, particularly Germany, which has reported zero growth. Putin emphasized the importance of maintaining this economic momentum and improving the quality of the economy, noting that Russia has overtaken Germany and Japan in terms of economic volume and purchasing power parity. The unemployment rate has dropped to a record low of 2.3%, and real wages have increased by 9% after accounting for inflation. However, Putin acknowledged persistent inflation, which has exceeded the government's target, and indicated that measures are being taken to address this issue, including raising the key interest rate by the Central Bank.
The Russian government is implementing various measures to address demographic challenges, particularly the declining birth rate, which has fallen to 1.41. Putin stated that to ensure population growth, the birth rate needs to reach at least 2.3. The government has introduced support programs for families, including financial benefits for pregnant women and families with children, to encourage higher birth rates. Experts believe that while these measures may help, their effectiveness will depend on broader economic conditions and social attitudes towards family planning.
During a recent press conference, Putin also addressed issues related to preferential mortgages, acknowledging difficulties faced by families in obtaining low-interest loans. He described the situation as 'an outrage' and promised to investigate the matter. The Ministry of Finance has since indicated plans to revise mortgage rules to eliminate limits on loan issuance, ensuring that families can access the necessary financial support. This reflects the government's commitment to improving housing conditions and supporting families in Russia.
