Putin names internal issues as main reason for economic slowdown

MOSCOW, Dec 1 (PRIME) -- Internal issues are the main reason for an economic slowdown in Russia, and chief among them are a deficit of investment resources, modern technologies, professional employees, insufficient development of competition, and imperfection of business climate, Russian President Vladimir Putin said Thursday in his annual address to parliament.

“Two years ago we faced serious economic challenges, unfavorable conditions on global markets, sanctions, which tried to make us dance to somebody’s pipe, as our people say, neglect our fundamental national interests. But I will repeat – the main reasons for the economic slowdown are hidden first of all in our internal problems,” Putin said.

Russia’s gross domestic product (GDP) decline in 2016 will be small, around 0.2%, Putin said.

“A decline in the real sector has ceased now, even a small industrial growth has been outlined. You know that if last year we had a GDP decline of 3.7%, I think that this year it will be small. It amounted to 0.2% over the 10 months and I think it will be at around this level,” he said.

Consumer price inflation will significantly slow down in 2016 and will be less than 6%, Putin said.

“If you remember, inflation stood at 12.9% in 2015. I hope it will not exceed 6% this year, it will be around 5.8%,”he said.

In 2017, Russia may reach the inflation target of 4%, he said.

A growth trend in industrial output has emerged and this trend should be preserved, Putin said. “Small, but the trend is positive, and it certainly should be kept,” he said.

Under the Economic Development Ministry’s forecast, industrial output is projected to grow 0.4% in 2016, 1.1% in 2017, 1.7% in 2018, and 2.1% in 2019.

The Russian government will continue providing targeted support to those economic sectors that need it, Putin said.

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