Putin says Russian economic can expect growth in next year

Record ID: 75047

  • Title: Putin says Russian economic can expect growth in next year
  • Date: 1st December 2016
  • Summary: RUSSIAN PRESIDENT VLADIMIR PUTIN WALKING INTO HALL AND APPROACHING PODIUM
  • Embargoed: 16th December 2016 11:09
  • Keywords: Russia president. Vladimir Putin state of the nation address
  • Location: MOSCOW, RUSSIA
  • City: MOSCOW, RUSSIA
  • Country: Russia
  • Reuters ID: LVA0025B1XSNB
  • Aspect Ratio: 16:9
  • Story Text:President Vladimir Putin said on Thursday (December 1) that Russia's economy had slowed down primarily as a result of internal problems and not as a result of the global markets.
    "The main reasons for the economic slowdown lie primarily in our internal problems. First of all it is a deficit in investment resources, modern technologies, professional staff, insufficient development of competition and a flawed business climate. Decline in the the real sector has now stopped, there has even been some industrial growth," said Putin, delivering his annual state of the nation address.
    Putin added that Russia's counter measures against Western sanctions had helped develop the domestic market.
    "There is a silver lining, our so-called partners imposed these sanctions, which I spoke of, we took responsive measures. Well, we helped our agricultural producers in the domestic market," he said, but added the situation could not last forever.
    "The consumer is in need of a competitive market, so that this favourable situation that has developed today, must, of course, be taken advantage of fully."
    Putin said he expects inflation to drop and for the country to return to economic growth.
    "We expect that inflation will drop considerably this year, it will be below 6 percent. Here too I would like turn to the figures - if you remember, inflation in 2015 was 12.9 percent. I hope that this year it will not rise above 6, somewhere around 5.8. The dynamics are clearly positive and significantly positive."
    After Putin's speech, Finance Minister Anton Siluanov said Russia should aim to return economic growth to no less than 3 percent. Siluanov said that both the tax system and the budget should be designed to boost economic growth.
    Russia's economy is on track to contract for the second year in a row in 2016, pressured by low oil prices and Western sanctions.
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