Photo: Yekaterina Shtukina / RIA Novosti
Russia has not yet formed the economic model that the country would be able to reach the growth rate at the level of three percent and more, said the Minister of economic development Maxim Oreshkin. About it reports TASS.
In the first quarter of 2019 the growth of Russia’s GDP was only half of one percent, which is at least the end of 2017. Thus, according to the head of the Ministry, the slower growth is the result of one-time factors. First and foremost, this was influenced by the increase in VAT deferred expenses budget, as well as increase the key rate of the Bank of Russia.
Given the one-off effect of raising the value added tax, the Ministry of economic development does not exclude that inflation at the end of 2019 will be below four percent.
To achieve increased growth rate, said., it is necessary to increase investment activity and quality of investment in the economy. In addition, you need to change the business climate in the country, mainly through the reduction of administrative barriers for business. In 2019 in corporate law I want to make a number of amendments to introduce the mechanism of “regulatory guillotine”.
To achieve a higher growth rate of economic development will offer the government a project to stimulate high-quality migration. In 2018, the number of labor migrants arriving in Russia was almost twice less than in 2017 and amounted to 125 thousand people that are unable to compensate for the natural decrease of the population. As a result, the population fell by almost 100 thousand people.
The Minister also said that, given the labor shortage, it is necessary to gradually abandon the labor-intensive stages of production with little value added and to chain education value added together with the countries-neighbours.
Another factor was the growing Russian market. In particular, we are talking about countries and societies of the EAEC, CIS, Union state of Russia and Belarus, and others.
Video, photo All from Russia.