The speaker: without reforming the Russian economy will grow by 1.5-2% per year

The speaker: without reforming the Russian economy will grow by 1.5-2% per year

MOSCOW, 7 Dec. The head of the Ministry of economic development Alexei Ulyukayev believes that without serious structural and institutional transformations of the Russian economy will grow in the next five years by 1.5 to 2% per year.

“I agree that in the next five years — until 2020, if we do not make serious structural and institutional reforms, growth will be below world, somewhere 1.5-2%. Respectively, will decrease Russia’s share in global GDP,” he said in an interview with the newspaper “Vedomosti”, answering the question regarding long-term forecasts of economic growth in Russia.

With regard to the proposal of the head of Sberbank German Gref to create a centre of reform, the speaker said that “reform and reform is a completely different story.”

“I believe that to create a reform is not necessary, we have enough of them. If the Ministry as the center of the reforms is not working, we need the Minister to change. And to create some additional structure is completely unnecessary,” said the head of the MAYOR.

Ulyukayev noted that the demand for reforms should be not primarily the state and business.

“I think (the inquiry), but it is not formulated and more about the feel. The problem is that the law of preferences benefits to current benefits to future acts very properly and prompted more business short term. It often boils down to cheap funding and guarantees of demand,” he said answering the question about the existence of such request from the business.