Putin reports on state of Russian economy

 Putin reports on state of Russian economy

Russian President Vladimir Putin said that the country's economy has overcome those difficulties that were caused by internal and external shocks, including those related to restrictions and slumping prices on export products.

"In other words, we expected that the negative impact of the VAT increase would be short-term, which is exactly what happened. Fortunately, it worked out and our calculations proved right. Now the inflation rate is going down, the macroeconomic situation is improving; investment is rising slightly," the Russian head of state stressed.

 In addition, he recalled that the government had to increase VAT from 18 to 20%, which affected people’s purchasing power because the inflation rate exceeded 5%. "But now the inflation rate exceeded 5%," according to Putin's interview with Financial Times published by the Kremlin website.