ST. PETERSBURG, June 16. /TASS/. Russia has successfully coped with the challenges of the last year and must now look to forge a new economy, an economy of supply and high wages, President Vladimir Putin said at the plenary session of the St. Petersburg International Economic Forum (SPIEF).

The head of state presented his vision for the future of the Russian economy in what turned out to be the longest speech he has ever given at the forum.

TASS has recapped the main points from the president’s speech.

Economic status

The Russian economy has successfully weathered the period "when the entire fabric of business and economic life was essentially altered," the head of state said. "Despite all the difficulties of the last year, Russia has held on to its position as an important player on the global market and ramped up its trade with countries whose leaders follow their national interests," Putin said.

The unemployment rate and inflation are at minimal levels and GDP is expected to grow by up to 1.5%, helping the country to keep its position among the world’s leading economies.

New economic configuration

Russia should now move to a sovereign "supply-side economy" that creates demand and doesn’t merely respond to market conditions. Such an economy "requires a large-scale increase in production forces and services, a widespread strengthening of the entire infrastructure network, the development of advanced technologies and the creation of new modern industrial facilities and entire branches," Putin said.

"The Russian economy must become an economy of high wages with new requirements for the professional education system, increased labor productivity, including on the basis of automation and new control systems, with high quality modern workplaces and labor conditions," the head of state noted.

Revenues and benefits

Real incomes of Russians started growing at the turn of last year. This trend is expected to intensify in 2023. Child allowances should be paid throughout the period of their designation, irrespective of whether the family’s income increases or not.

Departed brands

Foreign brands that left Russia after the start of the special military operation vacated up to two 2 mln square meters of retail space and "a niche of up to two trillion rubles ($23.8 bln)," the head of state said. This void was filled by Russian entrepreneurs.

Russia will not reject those who want to return to its market but will take into account specific features of behavior of some of these partners. Foreign companies remaining in Russia and continuing their operations "are considered to be domestic producers also and we will treat them as our own," the President noted.

Foreign trade

Russia will simplify the process of opening bank accounts for foreign companies as much as possible. In the meantime, the country expects to boost foreign trade by developing its infrastructure and will renew its commercial fleet in the next five years.