13 Jan 2022 12:27

Russian economy must grow by average of at least 3% annually - PM

MOSCOW. Jan 13 (Interfax) - The period of the Russian economy's adaptation to the challenges of the pandemic is over and the next objective is average growth of at least 3% per year in order to achieve the country's national development goals, Prime Minister Mikhail Mishustin said.

"The Russian economy recovered faster than expected. Our gross domestic product already reached the pre-pandemic level in the second quarter. Overall for the year we attained fairly high figures for key GDP parameters, industrial production and freight shipments. Employment recovered relatively quickly and domestic demand remained firm. There was also a favorable picture for Russia's traditional export commodities," Mishustin said in a video welcome message to participants in the Gaidar Forum Russia and the World: Priorities.

"The period of adaptation to the challenges of the pandemic is over. We can and must move on, within the context of achieving national development goals that the leader of our country has set," Mishustin said.

"A strong foundation is needed to realize all our intentions. This is solid economic growth, at least 3% per year on average," he said, adding that this will require faster growth of capital investment.

"We took a number of steps for this last year already. For example, we approved a plan to facilitate accessible finances for investment projects, launched new instruments to stimulate the inflow of capital, and approved a National Plan to Develop Competition. In order to ensure the effective transformation of savings into investment, meaning into further improving the living standards and quality of life of citizens, the government is now finalizing the Financial Market Development Strategy for the next ten years. We plan to approve it soon. The strategy will define the main priorities, long-term goals and instruments for the development of this area," Mishustin said.

"We are also devoting serious attention to changing the structure of investment. Investments in the development of information technology, microelectronics, development and production of telecommunications equipment and genetics are growing in our country. By the end of this decade, domestic spending on research and development from all sources should almost triple in current prices," Mishustin said.

He also said "massive injections into infrastructure development" are planned as part of approved programs and plans.

"The most important projects include the expansion of eastern [railways], ensuring year-round navigation of the Northern Sea Route, development of roads for the international Europe-Western China corridor, completion of the gasification of Russia's regions, the development of electric transport and many others," Mishustin said.