UPDATE: Putin: Russian economy survives crisis, starts to grow

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MOSCOW/GORKI, Moscow Region, Sep 11 (PRIME) -- The Russian economy has survived the crisis and has started to grow, and the government has to support its dynamics, President Vladimir Putin said on Monday at a government meeting.

Economic Development Minister Maxim Oreshkin said at the meeting that the pessimistic view of the Russian economy was proven wrong and provided some macro statistics data to confirm growth of the economy.

“Everything that you have just said obviously tells us that the Russian economy has survived the crisis, it is gaining momentum, and we have to do everything possible to support it. We recently spoke about this at international forums, including the BRICS summit. And these dynamics bring results over time. Participants of economic activity and citizens will gradually start experiencing the positive factors that are happening in the economy,” Putin said.

The president also called on the government to raise the minimum monthly wage to 85% of the minimum living wage starting from January 1, 2018 from the current 71–72%, and to make it equal to the living wage no later than on January 1, 2019 even despite additional spending of the government and the business on fulfilling the task.

“We have to solve the principal problem of making the minimum monthly wage at least equal to the living wage, of leveling it up with the living wage, and of overcoming the situation when the minimum possible wage doesn’t cover even the basic spending of citizens,” he said, adding that he asked the government to include corresponding suggestions in the 2018–2020 budget draft.

Oreshkin also said at the meeting that real wages will rise about 10% in Russia in the next three years. “In the three-year period, real wages are to grow about 10%. The rise of real income is very important, because it allows a country to attract and keep best talents, and in the modern economy the winner of the competition is, first, (a country) able to use the capacity of its residents properly and, second, which is the most attractive place to live and work for the best talents,” he said.

Real wages may rise more than 3% in 2017 and about 4% in 2018, he said. According to the statistics service, real wages rose 4.6% in July and 3% in January–July.

“It will take us several years to compensate for real income losses of the crisis 2014–2015. However, it is important that a rise in wages, which starts now, is based not on windfall proceeds from oil sales, but on active labor efficiency growth,” Oreshkin added.

Prime Minister Dmitry Medvedev said at a meeting of the government commission for budget drafting that the government should take into account latest trends in the economy while developing the budget for the next three years.

“In general, we have agreed about the main parameters. We have defined both the forecast and the main principles of the budget policy. Though it is evident that life is developing constantly, and we have to track all processes that are happening in the economy,” he said, asking the Economic Development Ministry to revise all recent trends and consider them in their economic forecast.

Medvedev also said that one of the tasks of the 2018–2020 federal budget is to ensure further growth of pension payments to Russians.

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