ALEXEY VEDEV: WHAT IS TO BE DONE IN ORDER TO BOOST ECONOMY?
Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, shared his views with MK regarding ways of acceleration of Russian economy.
According to expert, “In present circumstances 1.5% annual GDP growth is our maximum.” “Thus, one may forget about implementation of the May 2018 Presidential Executive Order. However, what is to be done in order to boost the economy? Firstly, it is required to loosen the budget policy. Previous government managed to save well rather than invest. Budget surplus amounted to Rb 2 trillion in 2019. This money was simply withdrawn from the economy and the purpose for saving was not clear. Secondly, the Central Bank key rate should be reduced more drastically. Thirdly, it is vitally important to improve business environment: there is a possibility to accelerate inflation and import growth under the expansion of domestic demand. Finally, our economy has a strong state presence and the level of this presence should be reduced. Corporate governance of industry and banking should also be improved.”
Alexey Vedev concluded: “All these measures are obvious, however, it is high time to implement them.”
Alexey Vedev concluded: “All these measures are obvious, however, it is high time to implement them.”