English
Русский Հայերեն

Economy

Results of the year: records of budget expenditures and financial stability

Results of the year: records of budget expenditures and financial stability

Closing the year 2023, the authorities announced that federal budget expenditures had reached a historical maximum - 32.2 trillion rubles, exceeding the planned figures. At the same time, revenues also turned out to be higher than expected, both from oil and gas and from other industries. They promised to keep the budget deficit at the end of the year within 1.5% of GDP. This was a signal that despite external pressure, sanctions, war and international isolation, the country’s financial system remains stable at the level of state finances. For the population, the result is ambiguous. On the one hand, the state had funds for social obligations, pensions, and support programs. On the other hand, high inflation, rising prices, and a decrease in the purchasing power of many citizens made these successes unnoticeable. December marked the end of a difficult year, when Russia avoided economic collapse, but challenges remained. The results of 2023 mean sustainability, compromises, and a new reality for those living in the country.

20.12.2023
Russian economy: growth, endurance, restructuring

Russian economy: growth, endurance, restructuring

According to experts, 2023 was a time for the Russian economy when it was possible not only to survive, but to partially rebuild: domestic production, reorientation to domestic demand, adaptation to sanctions, the use of new logistics, financial and technological schemes. Many companies, despite the pressure, were able to survive, especially those who switched to the domestic consumer market. Industry, agriculture and manufacturing showed resilience. Nevertheless, the foreign trade crisis, problems with logistics, expensive loans, lack of investment - all this nullified some of the advantages. For small businesses, 2023 turned out to be difficult: many closed, many began to survive in the “savings - no risk” mode. The year has become a test of strength for the economy: to survive, rebuild, adapt. For part of the country it was almost a miracle; for another, it’s a compromise with quality of life. 2023 turned out to be a year of endurance, but not calm.

04.12.2023
The return of masks: an increase in COVID incidence and new restrictions

The return of masks: an increase in COVID incidence and new restrictions

In November 2023, several regions of Russia - due to a surge in COVID-19 cases and seasonal diseases - reintroduced the mask regime in medical institutions. This was unpleasant, but expected news for many - the pandemic, which seemed to be a thing of the past, reminded itself. Some hospitals have reintroduced visitation restrictions, stepped up health enforcement, and increased demand for vaccinations and testing. For people, this meant a return to a restricted lifestyle: many gave up scheduled visits to doctors, trips, and social events. This especially hit the elderly, people with chronic diseases and families with children. November was the month when the illusion of “post-Covid normality” began to decline—society was once again faced with restrictions that reminded us that the pandemic can still affect everyday life and health.

29.11.2023
Logistics crisis and problematic business exports

Logistics crisis and problematic business exports

In the fall of 2023, the business community again focused attention on the problems that were slowing down economic activity: road and logistics difficulties, a shortage of high-quality logistics and high access to foreign markets. Many companies, even if there was demand and a willingness to produce, were unable to export goods: expensive transportation costs, sanctions, unstable exchange rates, difficulties with delivery - all this made exports unprofitable. Industrial and technology companies have had a particularly hard time. These problems have slowed down modernization and the introduction of new technologies and reduced investment attractiveness. This became a problem for Russia: a country focused on the export of raw materials, tried to develop the industry, but logistics and foreign economic pressure made the tasks more and more difficult. October 2023 became an indicator of systemic problems: even with GDP growth, consumption growth, government stimulation, business was faced with infrastructure and foreign trade restrictions that seriously hampered development.

20.10.2023
Economics: growth instead of collapse - why did GDP give a plus?

Economics: growth instead of collapse - why did GDP give a plus?

Despite external pressure, sanctions and difficulties, 2023 ended better than expected for the Russian economy. At the end of the year, the GDP forecast showed growth - the authorities stated that the result would exceed expectations. The drivers were manufacturing, construction and agriculture - sectors focused on domestic demand. Plus - consumer activity, despite rising prices and loans. This gave the authorities a reason to declare that an “economic apocalypse” had been avoided. However, the growth was accompanied by rising inflation, declining purchasing power among parts of the population, and increasing inequality. Those who depended on the stable operation of small businesses or foreign trade contracts fared much worse than large players focused on government orders. August became a symbol of economic stability—not grace, but stability. A year in which the economy did not collapse, but the quality of life of many deteriorated - and this became the new reality.

05.08.2023
Tax on foreign exchange transfers: restrictions on foreign transfers hit migrants and families

Tax on foreign exchange transfers: restrictions on foreign transfers hit migrants and families

In July 2023, the authorities severely limited currency transfers abroad - now money can only be transferred through official channels, with a commission and a strict limit on the amount and frequency. This affected millions of Russians living with relatives abroad, as well as migrants sending money home. People who are used to helping their relatives, paying for treatment, studying, or simply keeping in touch have faced new barriers: transfers have become more expensive, slower, and often accompanied by additional checks. Many families find themselves caught between two fires: on the one hand, the desire to support loved ones, on the other, the fear of breaking the rules and getting fines. Stories of troubles, financial difficulties, and uncertainty appeared in media chats and forums. For the state, restrictions served as a way to keep the currency within the country, protect the budget, and reduce capital outflow. For people, this has become a tangible limitation of their usual rights and connections. July 2023 reminded us: in “economic isolation,” restrictions are not only about business, but also about personal destinies, families and connections that were supported by simple transfers.

30.07.2023
Business under pressure: key rate of 16% and rising costs

Business under pressure: key rate of 16% and rising costs

In the spring of 2023, members of the large Russian business community noted that the key event for the economy was a sharp increase in the Central Bank’s key rate to 16%. This hit small and medium-sized businesses: loans became expensive, investment projects became difficult to implement, and company costs increased. It was especially difficult for those whose turnover “increased” based on demand expectations, but at a high rate, even working capital became risky. Export-oriented companies complained about logistical difficulties, high costs, and uncertainty. Many old contracts turned out to be unprofitable, and new ones were almost unavailable. In such conditions, the business community spoke of an outflow of investment, delays in modernization and the threat of layoffs. This became a test for the economy as a whole: against the backdrop of sanctions, external instability and war, a sharp tightening of monetary policy created an additional burden. May 2023 turned out to be the time when businesses began to reconsider their strategies, assess risks and survive in new harsh conditions.

23.05.2023
Inflation and products: an avalanche of prices shocks buyers

Inflation and products: an avalanche of prices shocks buyers

By May 2023, inflation in Russia reached 15–18%. Food prices have risen especially sharply: bread and flour have risen in price by 25–30%, meat by 20–25%, vegetables have constantly “jumped” due to seasonal shortages and logistics problems. Many Russians, accustomed to spending part of their budget on “spare supplies,” began to buy a minimum set of products, saved more often, and chose cheaper brands. The segment of premium goods experienced a decline: people gave up unnecessary things and reduced spending on entertainment, clothing, and equipment. The problem of regional inequality has worsened: in the capitals the situation can still be “survived,” but in the deep regions prices rose, but incomes remained at the same level. It was especially difficult for pensioners, single people, families with children - the budget was overloaded. Social tension began to rise. Queues for cheap products began to appear in stores, and demand for discounts and promotions increased. In the media there are stories from regions where people save on food and refuse vitamins and medicines. May 2023 was the month when almost everyone felt the rise in prices - and many wondered: how long will the “passenger life” last with constantly rising costs?

05.05.2023