Putin: Russian econ growth must exceed global rates

MOSCOW, Oct 24 (PRIME) -- Russia cannot be content with a gross domestic product (GDP) growth of 1.8% recorded in January–September, the growth must a global average rate, President Vladimir Putin said at VTB Capital’s Russia Calling! investment forum on Tuesday.

“We have a whole range of strategic goals now. We must not only consolidate positive trends, but give additional impetus to the Russian economy, raise its efficiency significantly. I will note once again that such a pace of growth cannot suit us. It is necessary to bring it above the global average,” Putin said.

“According to the estimates of the Economic Development Ministry, GDP growth amounted to 1.8% in January–September of this year.”

Annual inflation has slowed to 2.7%, he said.

“We have reached a record low inflation in the entire Russian history. As of October 16, it stood at 2.7% in annual terms. This allows us to expect that inflation will be below the 4% target this year,” Putin said.

Putin approved the central bank’s weighted policy on inflation targeting.

“All central banks, all regulators – in all countries of the world, which target inflation, are demonstrating excessive cautiousness at first glance, and I think it is to some extent justified, because there are still many risks. For an economy with such a structure as ours, depending on the commodities market, there are still many threats. That’s why I understand pretty well and on the whole approve of activity of the central bank, which is behaving so cautiously,” he said.

Capital investments in Russia grew 4.2% in January–September, under preliminary data, Putin also said. Real wages rose 2.5% in the period.

The government expects that non-energy budget deficit will fall to 5.9% of GDP in 2019 from 8.5% currently, while total budget deficit will be below 1% of GDP, Putin said. Oil and gas revenues will account for around 33% of all budget incomes over the next three years, he added.

“The federal budget’s dependence on oil conditions is falling steadily. If in 2014 oil and gas revenues accounted for more than half of budget revenue, 51.3%, this year they will already be 39%,” the president said.

The country’s foreign exchange and gold reserves are growing, the balance of payments has strengthened, and the ruble has stabilized, Putin also said.

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