Russia needs 5% GDP growth

In order to achieve its strategic goals, Russia needs an annual economic growth of at least five percent and less than five percent inflation rate, according to a report on the results of expert work on the country’s social and economic strategy until 2020 (Strategy 2020). In line with the Economic Development Ministry’s forecast, GDP growth will total some 3.7 percent in 2012, four percent in 2013, and 4.6 percent in 2014. Inflation may be 5-6 percent this year, 4.5-5.5 percent next year, and 4-5 percent in 2014. “Russia needs an economic growth of a certain quality,” the report said. “The country cannot live almost solely at the expense of exports of raw material resources not only because unstable prices for them predetermine unstable development, but also because in this case it is doomed to an increasing technological and institutional lag.” The first variant of Strategy 2020 was developed under the supervision of the Economic Development Ministry and approved by the government in 2008. After the global financial crisis it became clear that the Strategy needs to be adjusted, and in early 2011 Prime Minister Vladimir Putin asked experts to rework the strategy. Twenty-one expert groups are working on the new strategy dealing with economic growth, macroeconomic stability, pension system reform, budget and tax policy, education, healthcare and other aspects of the economic and social policy.