Translation. Region: Russian Federation –
Source: Government of the Russian Federation – Government of the Russian Federation –
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By the end of 2023–2024, the Russian economy demonstrated one of the highest growth rates in the past decade, increasing by a cumulative 8.4%. In nominal terms, the country's GDP has doubled since 2020, reaching 200 trillion rubles. GDP growth, amounting to 4.1% in 2023 and 4.3% in 2024, significantly exceeds the global average and the growth rates of leading Western economies. Deputy Prime Minister Alexander Novak announced this during a speech as part of the "Platform of the Future: 100 Russian Projects. Economy" project, held at the National Center "Russia."
According to him, the foundation for the transition to a new model of long-term growth based on supply-side economics is targeted support for domestic production, increased investment activity, and increased labor productivity.
"We see that the Russian economy is not only demonstrating resilience but also achieving profound structural changes. The doubling of nominal GDP, record growth rates, and reduced dependence on the raw materials sector are the most important results of our work in recent years," said Alexander Novak.
To consolidate this success and achieve the national goal of maintaining fourth place in the world in terms of GDP based on purchasing power parity (PPP) and achieving sustainable growth rates above the global average by 2030, a comprehensive strategy has been developed, the Deputy Prime Minister noted. It includes three key areas. The first is adapting to systemic challenges, such as historically low unemployment, a shortage of skilled labor, ensuring technological sovereignty, and ongoing sanctions pressure. The second is the effective allocation of resources and investment in the context of limited budget expenditures, with a focus on high-growth sectors: mechanical engineering, chemicals, high technology, and tourism. The third is increasing labor productivity through large-scale optimization, robotics, and the implementation of lean manufacturing methods.
"Our strategy is long-term. Economic growth will directly depend on businesses' ability to identify new growth areas, improve efficiency, and unlock potential in promising niches. The foundation we've laid will enable us to embark on a trajectory of high-quality and dynamic development," noted Alexander Novak.
The discussion focused on strategic areas for Russian economic development. Specifically, the Deputy Prime Minister highlighted key support measures for small and medium-sized businesses, including preferential lending and leasing instruments, umbrella guarantees, microloans, and accessible infrastructure for industrial and technology parks.
Small technology companies have become one of the fastest-growing sectors. Thanks to the register model, companies have access to approximately 20 support measures, allowing them to grow at a faster rate than the SME sector as a whole.
Improving labor productivity is also a prerequisite for long-term economic growth, Alexander Novak noted. The implementation of lean manufacturing tools enabled businesses participating in these projects to increase profits by nearly 0.5 trillion rubles.
Special economic zones, which celebrated their 20th anniversary this year, are driving regional development. Thanks to established infrastructure and incentives, investors save up to half their capital costs, reducing their tax burden.
High added value is the key characteristic of the creative economy. Over the past seven years, the creative sector in Russia has grown four times faster than the overall economy. Its share of GDP now exceeds 4%. The industry's potential lies in developing a supply-side economy, which will accelerate structural change and the achievement of national goals.
"Long-term economic growth will be determined by effective collaboration between regional authorities and businesses, where regions act not as distributors but as growth managers, businesses accelerate technological transformation and the restructuring of supply chains, and the state ensures a breakthrough in social productivity through investments in human capital," Alexander Novak concluded.
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