31 May 2004 12:44
RUSSIA MAY BRING INFLATION TO 3% BY 2008 - DEPUTY PM
MOSCOW. May 31 (Interfax) - Inflation in Russia is unlikely to exceed 10% in 2004 and may come to between 3% and 4%
by 2008, a senior minister said in a television program on Saturday, also arguing that a possible fall in world oil
prices would not seriously damage Russia's economy.
"For next year, we plan reduction in inflation to 8%, and by 2006 to between 4% and 6%. By 2008, we may achieve
indicators of between 3% and 4%," Deputy Prime Minister Alexander Zhukov told Russia's Rossiya television.
But "it will be much more difficult to keep at 8% the pace of
[economic] growth that we had in the first quarter of 2004 for this
He also said a possible drop in world oil prices would not have a serious negative effect on Russia's
economy.
"The government has built all the necessary mechanisms to have both a balanced budget and non-decreasing volumes
of social expenditure even in the case of a substantial decrease in oil prices. Necessary reserves have been created for
this and a stabilization fund for the possibility that the state of the market will deteriorate sharply," Zhukov
said.
He also said he thought it was "a realistic target" to double gross domestic product by 2010.
entire period," he said.
"The ruble is getting stronger. The ruble has become a stable
currency. We already have today most of the characteristics of the
He said this pace had been the result of high world oil prices and what was generally a favorable international
economic situation for Russia.
"Whether the ruble will ever become the kind of reserve currency
that the dollar, euro or yen is depends not only on Russia but on the
"Russia should take advantage of the favorable economic situation and the high world prices for oil to develop
industries that will not depend on the fluctuations of oil prices," he said.
become such a currency and I think we will be getting closer to this
for, say, the next few years. The ruble will be acquiring
He also argued that the Russian ruble met many of the criteria of a freely convertible currency and might become such
a currency within the next few years.
He also said combating poverty was a key task for Russia.
The number of people living off incomes below the official minimum
convertibility of the ruble," he said.
attitude of other countries to Russia. I'm sure that [the ruble] will
characteristics of complete convertibility," Zhukov said.
subsistence level had gone down by one-third for the past four years, he said. "Nevertheless, about 30 million
people receive sums of money today that are lower than the subsistence minimum. Under a three-year government program,
we are to halve this number."
[Interfax] |
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