Owing to the adaptiveness of national business in the Russian economy, steady growth is continuing, and the most important thing is to support and avoid a business initiative. This was announced on Tuesday, 21 May, by the Deputy Minister for Economic Development of the Russian Federation, Pauline Kruckov, at the expert business breakfast of the Officials during the session " GDP and/or low inflation? "

" When we look at the actual GDP growth figures in specific industries, one can see: our economy, our market was much more flexible and adaptive than it seemed, was said by the head of the Ministry of Economy of the Russian Federation.

She said that the economy continued to grow with low unemployment throughout the year, and inflation was declining compared to the fall of 2023. Polina Kruckova linked this to a high degree of flexibility in the labour market.

" While there is certainly tension in the labour market, we see, including an unarmed eye, the processes that can be described as capitalization " .

In response to a question about the potential growth rate of the Russian economy, the Deputy Minister noted that 2023 had shown that GDP growth was more than 3 per cent possible, with a frontal nature.

" There is a group of industries where growth is much faster than others. But it cannot be said that one part of the economy is growing at the expense of another.” She added.

" The wisest thing that can be done now is that of economic flexibility, the ability to adapt in all possible ways to maintain and, at least, avoid. Because that most entrepreneurial initiative, the ability of small, medium, large businesses to adapt - what saved us both in the pandemic and during the 2022 shock - underlined Pauline Kruckov.

In the context of the main theme of the session, she pointed to the importance of balance between different regulatory decisions, interests and approaches, which ultimately allowed the economy to develop successfully.

“Yes, we agree on the importance of the role of private business initiative. However, we understand that there are directions, projects that, under the current circumstances, business alone cannot be developed or can, but with very high costs on a very large horizon, explained to the Deputy Minister.

That did not mean that the State should interfere in the economy everywhere, but warned it. Its enhanced role is needed in strategic directions, in areas related to large technology projects and so on, through direct funding, the " budget lever " .

With regard to the factors affecting inflation, Pauline Kruckova noted that its deterrence instruments often depend not only on aggregate demand and supply but also on specific imbalances in certain segments.

“The past two years have shown that, in addition to global factors, very many microfactors are associated with possible market imbalances. As a result, it has concluded to address these issues, both in macroeconomic policies and in the supply-side of specific segments, in specific markets. "

The session was also attended by the Vice-President, member of the Board of Directors of the Bank of Russia, Alexei Zabotkin, Vice-Chairman of the Committee on Budget and Financial Markets of the Federation Council, Alexander Shenderuk-Jidkov, Chief Analyst, Comcombanka Mihail Vasiliev, economist Victor Tunev.

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