Russian Economy Growing Slower Than Planned, Medvedev Admits

The pace of growth of the Russian economy observed at the moment does not correspond to forecasts and “to what we are striving for,” Russian Prime Minister Dmitry Medvedev said in a debate program on TV channel Russia 24 on Wednesday.

According to the PM, Russia has all necessary resources for development of its economy, and the national projects are being implemented. Still, the pace of implementation is slower than expected, Medvedev said.

“Right now colleagues are preparing a forecast. Moreover, this forecast, as I understand it, will include two scenarios: one is optimal, and the second is more complex,” he said. 

In addition, Medvedev emphasized that the pace of economic growth depends not only on government actions.

“It’s obvious that the situation in the world economy also affects our development, our development opportunities. We see what’s happening, there’s huge slowdown in the international economy, there’s a large number of different problems, including trade wars, and there are still sanctions,” the Prime Minister said, noting that, despite this context, the government has to achieve its stated goals.

Anatoly Aksakov, head of the State Duma Committee on Financial Markets, noted that despite the fact that we have all necessary resources, there’s no systematic approach to their use.

“I would put uncertainty of our plans at the forefront: we don’t understand where we’re moving, how to work, what goals we want to achieve. Constant change in the rules of the game are hindering us: taxes and administrative laws are changing. At the same time, tax policy remains tight and doesn’t stimulate economic growth. Administrative barriers still exist, including those related to the judicial system,” he said.