Speaking at the Moscow Financial Forum on September 18, Russian Central Bank Governor Elvira Nabiullina explained that it is necessary to clearly distinguish between Retracement and acceleration.
It is true that there is acceleration but there is no decline. Even the concept of technical recession - GDP declining for two consecutive quarters - Russia has not experienced it yet, she stressed.
According to Prof. Nabiullina, the recession cannot be limited to just one index such as GDP. Normally, recession will be accompanied by a series of factors such as decreased real income, high unemployment, and cooling demand leading to low inflation.
In Russia, inflation has indeed declined but is still above the target. Therefore, there is no sign of an economic recession, she said.
Meanwhile, Russian Prime Minister Mikhail Mishustin said that the government is stepping up measures to strengthen confidence in the domestic stock market, aiming to attract 1,000 billion rubles (equivalent to 12 billion USD) of foreign capital on the exchange by 2030.
The Russian market must open up international capital flows. By 2030, the plan is to attract 1,000 billion rubles in foreign investment, Prime Minister Mishustin said in a message to the Moscow Financial Forum.
According to Prime Minister Mishustin, a key task in the coming years is to increase stock market capitalization to the equivalent of 2/3 of GDP. The government also encourages many large enterprises, including state-owned enterprises, to list on exchanges to increase attractiveness.
Russia has also promoted financial cooperation with friendly countries, especially within the framework of the Asian Economic Union (EAEU), with the goal of building a common financial market. Russia has also signed a deal that would allow cross-border access for stocks in the bloc.
These statements show that, despite external pressure, Russia still wants to affirm the double message: The Russian economy has not fallen into recession and continues to attract foreign capital to strengthen its long-term financial position.
