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All news / Putin: Russian Economic Trends Remain Positive, More Growth Needed

  • 19 Jul 2019, 09:20

Russia’s economic trends are positive but growth rates need to accelerate, the country’s president Vladimir Putin has said, according to NTV.“Russia has maintained positive economic growth rates for 13 quarters in a row,” the head of state said at a session on economic issues.

He cited figures for January-May, which indicated that “the gross domestic product was 0.6% up, and industrial production increased by 2.4%.” “Still, it is necessary to achieve more stable, and most importantly, more dynamic growth,” Putin said.

For this purpose, “it is necessary to maintain general macroeconomic stability, preserve the stable character of state finance, bring inflation back to the target values of 4% and provide a further reduction in unemployment.”

The head of state noted that “preliminary forecasts associated with the compulsory measure of increasing the VAT are justified after all, and after an insignificant rise, inflation started scaling down.” He also stated that unemployment “hit a record low of 4.5%.” “Still, it is necessary to closely monitor it and make the necessary adjustments to our work,” the president said.

The president also stated that “the most important component and strategic task is boosting the effectiveness of the domestic economy.”

“In particular, it is necessary to urgently implement measures on the National Project to increase workforce productivity: it is the determining factor for the growth of people’s wages and incomes, and it deserves our closest attention,” Putin told the participants of the meeting.

He added that “it is necessary to create new incentives for the development of small and medium-sized businesses in order to improve the business and investment climate.”

“Over the past two years, investment in fixed capital increased by more than 4%, and after the first quarter of this year, the rise was 0.5%. Perhaps, these are some corrections after enormous growth, but we should look into the situation,” the president said.

In his opinion, “financial support for business initiatives deserves special attention.”