Putin: Q4 GDP rises 2.3%, new investment needed

MOSCOW, Feb 12 (PRIME) -- Russia’s gross domestic product (GDP) grew by 2.3% in October–December 2019, President Vladimir Putin told the government on Wednesday and called on it to increase investment.

“What does the latest statistics data say? The estimate says that the growth of Russia’s GDP amounted to 1.3% last year, while its dynamics increased to 2.3% in the fourth quarter,” he said.

Fast economic growth is the basis for successful social development, for creation of new jobs, for improvement of real incomes of Russian families, and for positive demographic changes, he said.

At the same time, the government’s major economic goal is to launch a new investment cycle to increase investment to at least 5% or 5–7% to spur up GDP growth to faster than the global average already in 2021. “I expect joint teamwork of the government of the Russian Federation and of the Bank of Russia,” Putin said.

The government’s tasks for improvement of the investment climate in the country should be brought up to date, including approvals of the bills announced in the latest presidential address to the Federal Assembly, Putin said.

All social and investment plans that were announced should be completely underpinned by financing. All participants of the meeting should clearly define the positions and deadlines of how they plan to fulfill the tasks, he said.

The current macroeconomic factors ensure economic stability and reduce its sensibility toward changes in the global economic situation -- inflation slowed down to 3% in 2019, unemployment is at 4.6%, the National Wealth Fund exceeds U.S. $125 billion, and foreign exchange and gold reserves amount to $560 billion.

The volume of the National Wealth Fund and the reserves also provide strength to the financial system. “The reserves that we have accumulated are a safety net for the economy and for the financial system,” he said.

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