Strict monetary policy having minimal impact on Russian economy's "impressive" growth, but labor shortage is worrying - Nabiullina

MOSCOW. April 8 (Interfax) - The Russian economy is continuing to show "impressive" growth rates at the beginning of 2024; its limiting factor is not current strict monetary policy, but the labor market, Head of the Russian Central Bank, Elvira Nabiullina, said at a joint meeting of State Duma committees.

"Tight monetary policy slows down inflation, but its restraining effect on economic growth is minimal. The economy continued to demonstrate impressive growth rates in the fourth quarter of last year and at the beginning of this year," she said.

"And our surveys of enterprises, we always mention them, our numerous meetings with enterprises, show that both last year and now the main limiting factor for expanding production is not so much the lack of financial resources as the shortage of labor. Remember that the unemployment rate continues to achieve historical lows. Of course, difficulties associated with purchasing the necessary equipment and other obstacles also play a role," Nabiullina said.

"In contrast to the recovery phase of growth, expansion of production is now possible mainly through investments in automation and in increasing labor productivity," she said. "Therefore, low, predictable inflation is no less important for business than it is for citizens," she said.