Putin’s Famous Q and A: Russia’s Economy Has Stabilized, Improvements Are ‘Round the Corner
— Vladimir Vladimirovich, you had an interesting question during the annual phone-in 2 years ago. They asked you whether Russia was having bad luck or good luck. You replied that it was a little of both. What would your answer be today?
Vladimir Putin: Obviously, the question isn't unexpected because it's about our achievements over the past year. I've got last year's results and the trends for the first quarter of 2018. If I had to define our luck at the moment, whether it's bad, good, or both, we're moving towards a run of stable good luck. However, nothing is ever black-and-white, not even in nature. Even in the Arctic, where the perfectly white desert is everywhere, you'll find specks of black and gray from time to time. The same pattern can be observed in our lives; but, in general, we're moving in the right direction. What makes me think so? What gives grounds for my statement? First, we've got on the path of sustainable economic growth. Sure, for now, this growth is moderate, but steady, nonetheless. The essential fact is that the growth was 1.5% last year, it wasn't an economic plunge. We can see steadily increasing development of manufacturing and agricultural industries, too. All these factors confirm the presence of a persistent trend in this matter. This proves that we are, in fact, moving in the right direction. Currently, inflation is at its historic low, which is a crucial prerequisite for future growth. All these factors take place amid the swift growth in direct investments of 4.4% over the past year, which is a great indicator. This means we have guaranteed, ensured future growth. We have a great trade surplus. I've heard different numbers regarding last year, some say it's 130 billion, others say it's 120. Yesterday, my colleagues and I discussed it, agreeing on the final number of 115 billion ($1.8 billion), which is still a great result. Given our low external public debt, which is less than 20% and the steady growth of the Central Bank's gold and forex reserves from 400 to 450 billion or something like it. All that proves we have stable, favorable conditions for a sustainable economic growth. Finally, one of the most important indicators, average lifespan, keeps increasing, that's first.
Second, we've finally reached the steady growth of our people's income. Salaries have grown by 1.9%, and real disposable income has grown by 3.8%. Experts provide different data in this case, too. Not counting the additional 5,000 rubles ($80) payouts that the welfare recipients received late last year, it makes 3.8%. I'd like to do, however, caveat and stress this again for our dear viewers and listeners that of course, not everyone feels or sees this. However, in general, this is what objective statistics shows. This is how it is, this is the actual truth.
Our mechanical equipment exports are increasing steadily and considerably. This fact confirms certain structural changes in the economy. I've already noted with approval that our agricultural export is increasing, too. Look, the year before last, it was at 20 billion ($318 billion), and we were glad that it exceeded the arms export which was 15 billion ($238 billion). Right now, it's already reached 23 billion ($365 million), and it will keep growing this year. Thus, we can assert with confidence that we are moving towards a run of good luck.
However, there are still plenty of issues to be resolved.
— The export of machinery and equipment is increasing, as you've stated, despite the sanctions.
Vladimir Putin: Well, it's not all about sanctions. Let me make sure I haven't left anything out. I think I've covered the essential. There are other good indicators, but this is enough for now.