Putin Wants Russia’s Growth Faster Than Global Average

The growth rates of the Russian economy should exceed global figures, which is the basic condition for a breakthrough, Russian President Vladimir Putin said in his address to the Federal Assembly.

“Increasing the country’s economic potential is the main source of additional resources. For this we need an economy with growth rates exceeding the global level,” he said. “This isn’t just a wish, but a basic condition for a breakthrough in resolving social, infrastructure, defense and other tasks”, RT reported.

An increase of the gross domestic product per capita by 1.6 times by mid-2020 is one of the key tasks, according to the president. “This is a very challenging task but I am confident that we are ready to solve it.”

Putin also stressed the necessity to reduce the public sector’s share of the economy. “To let the economy work at full capacity, the business climate must be improved dramatically, with the highest level of business freedom and competition.”

The president set a goal to cut poverty minimum in half in the next six years, saying the well-being of Russians and their families should be the top priority.

Putin outlined Russia’s macroeconomic situation, including its record-low level of inflation. He said this new reality gives businesses the certainty of long-term stability and allows them to invest into projects that take many years to realize. The people reap their own benefits, he added, in the form of cheaper bank loans.

He described his view on the sources of economic growth in the years to come, including strategic state-assisted investments, small businesses and the export of goods with high added value.

He hailed Russia’s record-high agricultural production this year and said that the country needs to capitalize on this achievement by winning new foreign markets and developing the food industry.

Russia needs to reduce the share of state-owned businesses in its economy, Putin said. Privatizing banks, which had to be nationalized to improve Russia’s banking sector, would be part of the solution.

Putin called for reducing the severity of punishment for economic crimes while making the criminal code tougher on crimes against the person. He promised further reform of the way governmental bodies like the tax authorities or communal services interact with the people. Russia has been working on digitizing and streamlining this area, making the interaction less time-consuming and more accessible.