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The high rating of the Russian President helps implement social reforms, including the reform of social benefits, Deputy Prime Minister Alexander Zhukov said at the conference “Corporate governance and economic growth in Russia”.
He said the government suggested that benefits should be replaced with direct payouts. All Russian citizens would get sufficient compensation in cash and the benefits they need. This would help bring order to the social sphere and increase the incomes of poor citizens, Mr. Zhukov stressed.
According to him, 30 percent of Russian people currently live below the poverty line. The government set a goal of halving this number over the next three years. “This is no easy task, though personal incomes rise by an average of 12-15 percent a year,” the Deputy Prime Minister noted.
He said annual inflation could be reduced to 3 percent by 2008 under certain circumstances. Inflation is expected to be 8 percent in 2005, 6-7 percent - in 2006 and 4-6 percent – in 2007.
In his annual address to the Federation Council, Vladimir Putin set a goal of reducing inflation to 3 percent a year. “This task is not easy, but it is realistic,” he said. Inflation is expected to be 10 percent in 2004.
According to the Deputy Prime Minister, the GDP grew by at least 8 percent in January-May 2004. Over the past five years, the average annual GDP growth was 7 percent. The Russian economy grew 8 percent in the first quarter of 2004. Mr. Zhukov said economic growth had slowed down in March and April, but the overall trend was positive. The GDP grew 7.3 percent in 2003, and it is expected to grow 6.6 percent in 2004.
Russia’s exports could reach $150bn, according to Mr. Zhukov. He said oil prices were record high, which raised concerns about the Russian economy in the event of a fall in oil prices. The Russian government had taken measures to reduce such risks, he said, in particular, the Stabilization Fund was set up. In Mr. Zhdanov’s opinion, the stabilization fund could be no less than RUR 300bn by the end of this year.
He also said the ruble would not strengthen by more than 7 percent in 2004, and inflation would be reduced to 10 percent, as planned.
The Deputy Prime Minister expressed confidence that Russia could join the WTO before the end of next year.
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RUSSIA IN FACTS
