Russian GDP grew 4.1% in 2024 – Mishustin

Russia’s GDP reached a record high last year, according to Prime Minister Mikhail Mishustin.

The prime minister made the remarks on Friday during a meeting with Russian President Vladimir Putin on macroeconomic policies for sustainable growth.

Mishustin cited data published by Russia’s state statistics agency, Rosstat, which reported that GDP grew by 4.1% in 2024, “driven by high investment and consumer activity.”

According to the prime minister, Russia’s nominal GDP hit a record high of 200 trillion rubles (over $2 trillion) by the end of 2024.

He emphasized that the Russian economy is successfully adapting to sanctions, unlike some of the countries that agreed to impose them, which are now facing stagnation. Mishustin described the manufacturing sector as the key driver of Russia’s economic growth.

“In general, our industrial production has increased 4.6%, which is better than all preliminary estimates,” he emphasized.

Russia’s unemployment rate averaged below 2.5% in 2024 and has now fallen to 2.3%, which, according to Mishustin, is a critical factor in the country’s economic stability.

While monetary policy measures help create the necessary conditions for lowering prices, they could also slow down economic growth, Mishustin cautioned. To mitigate this risk, he stressed the need for the government and the Bank of Russia to implement a responsible approach to budgeting and macroeconomic policy.

Last month, Putin said that 2024 was a successful year for the Russian economy, emphasizing that key macroeconomic indicators remain positive. He noted that the federal budget deficit stood at 1.7% of GDP, calling it an acceptable level, particularly in comparison to developed economies.

Statistics show that in 2024, the budget deficit as a percentage of GDP was over 6% both in the US and France, 3.8% in Italy, 3.7% in Japan, and 2.2% in Germany.