Budget constraints and slowing investment are main internal challenges to sustainable economic growth in Russia - minster

MOSCOW. March 18 (Interfax) - The main internal challenges to long-term sustainable economic growth in Russia are budget constraints, increasing competition from imports and slowing investment, Economic Development Minister Maxim Reshetnikov said at an extended ministry meeting.

He said the main objective set by the president was "to enter a long-term economic growth trajectory."

"This needs to be resolved amid uncertainty and challenges. External challenges include mounting sanctions, trade wars and geopolitical conflicts. Internal challenges include budget constraints, increasing competition, including from imports, declining corporate profitability and a slowdown in the economy and investment," the minister said.

"The key question is what will the growth potential be? This potential depends on a number of factors: on structural changes in the economy, on businesses' investment activity, on their confidence in the protection of property rights, on the speed of enterprises' adaptation to new conditions, and on active foreign trade policy. And, of course, on the effectiveness of state support measures," Reshetnikov said.

"That is, it depends on systemic solutions that will help reduce costs in the economy, improve the quality of the investment climate, the productivity and flexibility of the labor market, and the speed of technology adoption. These are also issues of competition, the formalization of the economy and the reform of institutions," he said.

All these tasks are included in the plan for structural change being implemented by the government, he said.