Nabiullina warned about maintaining low rates of growth of the Russian economy


Rapid changes in the structure of Russia’s economy is not expected and therefore the rate of growth in the near future will remain low, said the head of the Central Bank Elvira Nabiullina, speaking on 2 December in the state Duma.

“Drastic changes in the structure of the economy is not going to happen, it takes time. Growth will be positive but will remain modest,” — said Nabiullina (quoted by “Interfax”).

CB head stressed that the dynamics of the world prices for oil will continue to create serious risks for the Russian economy because of its “low diversification”. In this case, the increase in world oil prices in the imposition of real constraints of oil production OPEC and non-cartel countries, major improvements will follow. According to Nabiullina, the rise in oil prices will only create the illusion of returning prosperity, but it won’t cure the internal problems of the Russian economy, to truly improve the situation we need to take serious measures.

The head of the Central Bank, warned that without changes the structure of the economy resume growth is “uneven wear” and may not affect all sectors of the economy. As a result, potential growth rate will be limited to 1.5-2% per year, while significantly more is needed.

“Easy recipes to restore the ability of the Russian economy to grow at a rapid pace, but we have to put up with the ceiling of 1.5-2% is impossible”, — said Nabiullina (quoted by TASS).

In the middle of 2016 that, unable to fit into the “new normal”, Russia risks getting stuck on inappropriate for her average annual GDP growth rate of 2%, said Alexei Ulyukayev, who was then a post of the head of Ministry of economic development (November 15 was arrested on charges of receiving a bribe of $2 million, after which the President of the Russian Federation Vladimir Putin has sent it in resignation “in connection with loss of trust”).

“The rate for the Russian economy are unacceptable, as it leads to a decrease in our share in the global economy, loss of competitiveness, the fall in the standard of living of the population relative to most countries,” — said Ulyukayev, describing a very real problem out “on the trajectory of the four percent growth of GDP.” In new conditions the main engine of economic growth, according to the former Minister, should be to intensify investment, primarily in infrastructure.

Turning 1 December message to the Federal Assembly, Vladimir Putin stressed that Russia cannot afford its economy is to “circling around the zero.”

“The main reasons for the deceleration of the economy lie primarily in our domestic issues. First of all, the shortage of investment resources, modern technologies, professional staff, lack of competition, shortcomings in the business climate”, — said the head of state, instructing the government to develop the economic development plan until 2025, so that already at the turn of 2019-2020, the Russian economy reached the growth “above the world”.

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