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October 5, 2011. Minister Elvira Nabiullina spoke at Governmental Hour program in the State Duma of the Russian Federation Federal Assembly

05.10.11
October 5, 2011

 Nabiullina: “The Russian economy will shift to a new growth model in the near future”

 MOSCOW, October 5. – INTERFAX – The Russian economy will be in the transitional period in the near future, in terms of change in the economic growth model, told Elvira Nabiullina, Minister for Economic Development of the Russian Federation, at Governmental Hour in the State Duma on Wednesday.

 “The Russian economy will be in the transitional state in the near future in terms of change in the economic growth model”, she noted.

According to her, one will have to shift “from development in the favorable external environment to development in turbulence created by increased volatility of global markets”.

The Minister told that it concerns a greater role of internal economic growth factors and gradual movement from the raw-materials model of the economy to a more innovative and investment focused one.

"Despite greater uncertainty, Russia is well positioned to continue transition to the innovative economy. For this purpose, it is necessary to greatly improve the investment environment, the operating conditions for small and medium businesses, to enhance efficiency of the governmental policy in terms of project program approach to development of the top complexes and regions”, the Minister believes.

Nabiullina: “If the second crisis wave comes, it will not be as deep as in 2008/2009”

MOSCOW, October 5. – RBC – European debt prоblems might shake the global financial system and hinder growth options in all regions. Such opinion was voiced by Elvira Nabiullina, Minister for Economic Development and Trade, at Parliamentary Hour in the State Duma. “If the second crisis wave comes, the crisis will not be as severe as in 2008/2009”, she noted.

According to her, the global economy’s growth will be below 4% in 2012/2014, and growth in developed nations will not exceed 2%. The 2008/2009 crisis or a long-term stagnation in developed nations suggested that Russia is exposed to major risks. «We will be sensitive to a long-term stagnation”, the Minister noted. “However, our positions are rather goo. We have comparatively low debt volume, the governmental gold and currency reserves are still significant, and the current account surplus is high. The stock market is not overheated”.

The Minister reminded that the capital outflow came to US$ 50 billion as of October 1, 2012.

"Developed nations will have to shift to the mode of significant budget savings, and for a long term. This means for the Russian economy reduction in the growth factor for export of raw materials to European markets; therefore, it is critical to make use of all growth factors of the Russian economy”, Nabiullina said.

MED: Govenmental Programs in 2011/2014 will ensure almost a half of economic growth in Russia

MOSCOW, October 5. – Novosti Russian Information Agency- The overall contribution of all governmental programs funded from the federal budget, that are or will be implemented in 2014/2014, amount to at least 7.9 percentage points of accumulated GDP increment rate. Told Elvira Nabiullina, Minister for Economic Development and Trade, speaking in the State Duma.

"We assessed the overall contribution of all governmental programs that are being implemented and are prepared to be funded from the federal budget in 2011/2014. This overall contribution is estimated as at least 7.9 percentage points of the accumulated GDP increment rate, or 45% of total growth will be secured by implementation of such programmic approach”, she told.

She reminded that such program approach on the part of the state, coupled with the efforts to improve the investment environment, are the determinants of economic growth. “In the context of budget limitations, savings of each kopek of budget funds is, of course, essential”, the Minister emphasized.

Under a more comprehensive review of investments, including creation of new facilities, productivity and import replacement increase, this comprehensive contribution is estimated by MED as approx. 60% of economic growth in this country during the next three years. “The economic policy upholds the trend towards economic diversification; it takes growth in investments into non-mining sectors, greater diversification of investments”, Nabiullina explained.

For instance, some 2.77% of GDP, or some RUR 6.8 trillion is channeled towards support of governmental programs and other efforts in the aerospace industry, nuclear engineering, science, governmental defense orders in 2011/2014. Nabiullina told that the program for development of the transport system will necessitate that some 1.2% of GDP, or RUR 2.9 trillion, be allocated for 4 years. “Contribution of this (transport) sector into the accumulated GDP growth is estimated at 1.5 percentage points of GDP", the Minister noted.

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