Medvedev: Russia’s economic growth not satisfactory yet

SOCHI, Feb 14 (PRIME) – The Russian economic grows for a third year in a row, but the quality of growth is not satisfactory yet, Prime Minister Dmitry Medvedev said at an investment forum on Thursday.

“I will remind that last year the gross domestic product (GDP) grew over 2%, economic growth has been recorded for a third year in a row. But we understand that the quality of this growth does not suit us,” he said. “The main thing is that our citizens do not feel this growth yet.”

Russia continues to experience a whole range of unfavorable factors, including growing protectionism, sharp changes of oil prices and a constant threat of sanctions expansion, but the economy is already reacting to these challenges in a different way, Medvedev said.

“Of course, we are still facing a whole range of unfavorable factors, they have not disappeared. These are trade wars, the growth of protectionism, worsening of global trade conditions, slowing of the global economy, sharp changes of prices for oil and other products of our exports, and a constant threat of sanctions expansion, which provokes capital outflow,” he said. “All this, of course, does not help. But at the same time our economy already reacts to all these factors differently.”

Inflation accelerated to 5% at the beginning of this year, but the government expects that it will return to the target level in a year, Medvedev said.

Growth of capital investment remains below the target, but the financial markets and the banking system are stable, he said.

Unemployment remains at a record low level of 4.8%.

Business is actively involved in the national projects, and around 1,000 initiatives worth 76 trillion rubles have already been announced, Medvedev said.

“They (representatives of business) have already joined this process, a preliminary portfolio of projects is being formed, almost 1,000 initiatives have been submitted, for almost 76 trillion rubles, 250 of them are already investment proposals, around 12 trillion rubles. These are various spheres – from construction of gas chemical complexes and waste burning plants to creation of Russian software products with elements of artificial intelligence,” he said.

Medvedev also said the government could extend the mechanism of special administrative regions to other regions in case of positive results in the Kaliningrad and Primorsky regions.

He also said the government plans to revise the mechanism of subsidies in the production sector and agriculture depending on their impact on investment.

(65.6783 rubles – U.S. $1)

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