Putin Aims for Russia's Economy to Reach Top 4 Global Ranking by 2030

Written by Henrik Rothen

Apr.01 - 2024 7:29 PM CET

Photo: Shutterstock.com
Photo: Shutterstock.com
Vladimir Putin has set the gears in motion for Russia to ascend into the ranks of the world's top four economies within the next decade. With a detailed plan aimed at transforming the nation's economic landscape, the world watches as Russia embarks on a journey toward unprecedented growth.

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Vladimir Putin's latest directive to his government is not just ambitious; it's a blueprint for a monumental leap in Russia's economic standing on the global stage.

By aiming to position Russia among the top four largest economies by 2030.

A Directive of Economic Proportions

Published on the Kremlin website according to TASS, the instructions follow Putin's address to the Federal Assembly in February, laying out a strategy that pivots Russia towards achieving a formidable economic milestone.

With a deadline for an initial progress report set for March 31, 2025, the Russian government is under pressure to turn Putin's vision into reality. Especially considering that Russia still has an ongoing war with Ukraine, which has significantly impacted their currency.

The plan is comprehensive, targeting various sectors for growth and efficiency. One of the key objectives is to increase the level of gross added value in the manufacturing industry by at least 40% compared to 2022. This ambitious goal underscores a shift towards enhancing Russia's industrial capabilities, moving beyond its traditional reliance on natural resources.

Reducing Imports, Boosting Exports

Another critical aspect of Putin's economic strategy is to lower the share of imports in GDP to 17%, aiming to strengthen domestic production and reduce dependency on foreign goods. Coupled with this is the goal to boost non-resource and non-energy exports by at least two-thirds, diversifying Russia's export portfolio beyond its staple commodities of oil and gas.

This strategic pivot is not just about bolstering Russia's economic resilience but also about redefining its role in the global economy. By focusing on manufacturing and broadening its export base, Russia is poised to enter new markets and establish itself as a competitive force across various sectors.

A Future of Fiscal Strength

The directive also addresses the need to improve fiscal stability across Russia's regions. The aim to gradually reduce the number of regions with low fiscal capacity is a nod to the importance of a balanced, robust economy that benefits all parts of the country.

This approach signifies a move towards reducing economic disparities and fostering a more equitable economic development model.

There is no doubt that it is extremely ambitious of the newly re-elected Russian president, and perhaps he should soon consider ending his invasion of Ukraine if it is to be realistic in any way?