Russian economy unsteady but will improve: Putin

Russian President Vladimir Putin said Thursday that the country's economy is unsteady but that there are reasons to be optimistic.

In an annual live phone-in, Putin described the state of Russia's economy as in a "gray zone," citing recent economic figures.

Real income of the Russians declined by 4 percent last year while real salaries dropped more, according to the president.

But he said low unemployment and low budget deficit offer optimism. Russia enjoyed a export surplus of 146 billion rubles (2.2 billion U.S. dollars) last year despite a dive in oil prices, Putin said.

Putin expected the country's GDP to shrink by 0.3 percent this year and grow by 1.4 percent in 2017. Russia's GDP declined by 3.7 percent in 2015.

He said Russia's foreign reserves had returned to the level of early 2014 at 387 billion dollars.

Economic policies, in particular import policies designed to counter Western sanctions, need to be reformed to increase food security and gradually fill the market with domestic products, ultimately cutting food prices, Putin said.

Slumping oil prices and crippling Western sanctions imposed to punish Moscow's role in the Ukrainian crisis have bashed up the Russian economy, driving the ruble to record lows against the U.S. dollar. Endi