Econ ministry sees capital investment in Russia falling by up to 2% in 2022, dipping slightly in 2023

MOSCOW. Sept 21 (Interfax) - Capital investment in Russia will slump by up to 2% in 2022 and decrease slightly in 2023, but then begin to grow in 2024, Economic Development Minister Maxim Reshetnikov said, citing his ministry's forecast.

"At the moment, based on figures for investment activity [in Russia] in the first half of the year, despite the estimates of many and, frankly speaking, our own expectations to a large extent, we have plus 4% investment growth for the second quarter. We studied in detail the reasons, how, why. Indeed, businesses accelerated the implementation of projects to the maximum, completed what could be completed," Reshetnikov said at a meeting of the Federation Council's Economic Policy Committee.

"It's clear that in the second half of the year we are unlikely to manage to maintain such a positive dynamic, so we expect some decrease for the year overall, but I think that it will be within the bounds of 2%, which considering the current situation is very, very decent," he said.

"Next year there will be the process of recovery, but at this point we also expect that we will be slightly in negative territory, however, beginning in 2024 revival, after all these plans and new inputs for the economy, we expect growth of investment, and this growth will exceed the growth of gross domestic product, since it is expected, of course, on the back of investment," Reshetnikov said.