Arkady Dvorkovich reveals government’s expectations for economic growth in 2016

Arkady Dvorkovich reveals government’s expectations for economic growth in 2016

In spite of the ongoing crisis, the Russian government expects the economy to grow in 2016, according to Russian Deputy Prime Minister Arkady Dvorkovich, who was speaking at the Asian Financial Forum in Hong Kong.

“We expect positive economic growth this year, despite the economic crisis. We are in constant dialogue with the business community, discussing measures to support the economy,” said Dvorkovich, as quoted by RIA Novosti.

He noted that the last 10 years had been successful for the Russian economy, allowing Russia to build up reserves. Now, in his words, the conditions have changed: oil prices are low, the rouble has weakened compared to other global currencies, and interest rates in the economy are high.

“We are confident that we will be able to get through this challenging period successfully,” said the Deputy Prime Minister, noting that the weaker rouble was creating opportunities for Russian exports, such as industrial goods and foodstuffs supplied to China.

Last week, the Ministry of Economic Development downgraded its outlook for Russia’s development in 2016. According to the ministry, Russians will suffer more in financial terms in 2016 than previously thought: real wages will decrease by 3.5% rather than 0.2%, personal income will fall by 4%, not 0.7%, and the unemployment forecast has been increased from 5.8% to 6.3%.

Earlier, the Minister of Economic Development, Alexey Ulyukaev, speaking at the Gaidar Forum, had forecast that Russia would become a “comfortable” country by 2030. “The 2030 country is a country comfortable to live in. It is a country where no one will pay a kopek in tax without receiving government services of an appropriate quantity and quality in return for their contribution. Finally, as I see it, it is a country where no one will be interested in how much oil costs or the exchange rate of the dollar to the rouble,” he said.

Source: (Russian)

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