Export decline because of increasing domestic demand

The Central Bank of Russia has predicted a decline in exports due to increased domestic demand.
First Deputy Director of the Central Bank’s monetary policy department, Andrei Gangan, said that the Russian economy will be less export-oriented due to rapidly increasing domestic demand. He added that GDP growth is also associated with the recovery of domestic demand.

“The only component that pulls the total GDP down and does not allow it to grow is net exports… Most likely, in the new reality we have a situation where the Russian economy has become less export-oriented,” Mr. Gangan said at a communication session with business leaders as quote by the Interfax news agency.

In 2023, as the deputy director clarified, the country’s GDP has not merely recovered, but also exceeded pre-crisis levels. In 2024, economic growth will continue, he believes. At the same time, according to Andrei Gangan, due to a reduction in exports, foreign exchange earnings will also decrease.

At the end of 2023, the volume of non-resource, non-energy exports of Russia decreased by 23%. At the same time, the Ministry of Industry and Trade has reported a substantial  increase in export volumes to Turkey, China, Egypt, Brazil and Saudi Arabia.