Despite some negative trends, the Kremlin does not believe the economic situation in Russia is disastrous

Thursday, August 6, 2020

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"The economic situation is not calamitous, but it raises concerns at the least," Dmitry Medvedev, the chief of the presidential administration, said in an interview with the Ekspert magazine. "It is true, growth has slowed down somewhat, and inflation may rise. However, there are no appropriate data to analyze growth decline so far," said Medvedev. Asked what solutions to overcoming possible economic stagnation were being discussed in the Kremlin, Medvedev said maintaining rather high GDP growth (at least 7%) had to rest, above all, on financial stability, i.e. a macroeconomic balance between rate and inflation. "The business climate which includes pursuing relevant tax administration, anti-trust policy, and sustainable property relations, is of no less importance," said Medvedev. Measures to encourage small and medium business development, raise productivity, attract massive investment, and implement major national projects are extremely important in the mid term, according to the Kremlin official. "To avert inflation dynamics we need to ensure competition, encourage monopolies to lower costs and tariffs, and boost the stock market's appeal," said Medvedev. Medvedev said a viable financial system was the most important infrastructure element. He believes "the financial system is too weak and needs to be strengthened considerably, particularly in view of Russia's accession to the WTO." Medvedev believes opening doors to foreign capital must not ruin the national financial system. "Russian financial institutions' entering neighboring markets is also desirable," said Medvedev.

Bookmark Despite some negative trends, the Kremlin does not believe the economic situation in Russia is disastrous