30 Dec 2021 09:29

Russian economy close to overheating, future growth constrained by labor market - CBR

MOSCOW. Dec 30 (Interfax) - The Russian economy is close to overheating and is now exceeding its potential, butting up against the labor market, the director of monetary policy at the Central Bank of Russia (CBR), Kirill Tremasov said.

"Analysis of [the labor] market shows that the Russian economy is now close to overheating. We are probably already above the trajectory of our potential capabilities and the labor market is the key constraint on long-term growth," Tremasov said on Youtube channel Bitkogan.

"These limitations will not allow us to achieve higher growth. Now whatever large-scale investments are made at a preferential rate or not a preferential rate, it will still create an additional pro-inflationary effect. Therefore, long-term growth is in increasing the economy's productivity," Tremasov said.