Russian economy will continue growing at more moderate pace than past two years in controlled 'soft landing' - Reshetnikov

MOSCOW. Sept 23 (Interfax) - The Russian government will discuss the macroeconomic forecast for the next three years at a meeting on Wednesday, Economy Development Minister Maxim Reshetnikov said in a speech for the Federation Council Committee on Economic Policy.

He said that GDP would grow at a more modest rate than in the past two years [economic growth exceeded 4% in 2023 and 2024], in a controlled "soft landing".

The minister also said that slowing inflation would create space for a continued easing of monetary policy, which is important for economic growth in the long term.

"The Russian economy will grow and continue to grow this year, but, of course, at a more modest rate than in the past two years. This will be a controlled 'soft landing', reducing inflation pressure and establishing a balanced and sustainable growth rate for the coming years," the minister said.

He said that growth continued to be driven primarily by domestic demand, above all among consumers.

"As inflation processes slow down, this will continue to make room for an easing in monetary policy, which is crucial for economic growth in the long term," Reshetnikov said.

"These trends are at the foundation of the draft socioeconomic development forecast which the government will discuss tomorrow. A balanced budget is being formed on the basis of this forecast, allowing all social obligations to be met, national projects implemented and defense and security needs covered," the minister said.