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RF can balance social obligations if its economy grows by 4%

Economic Development Minister emphasized that the inertial model of development that Russia used before the crisis gave it 2 percent of the GDP growth

MOSCOW, October 2 (Itar-Tass) — Russia will be able to balance social obligations with resource opportunities only if the economic growth makes up 4-4.5 percent, Economic Development Minister Andrei Belousov told the Russia Calling forum on Tuesday.

“The growth of 4-4.5 percent is that minimal level that allows us to balance social obligations and the spending on defence with our resource opportunities,” he said.

Belousov emphasized that the inertial model of development that Russia used before the crisis gave it 2 percent of the GDP growth.

“The share of consumption in the GDP – minus 3 percent, of export – minus 2.5 percent and of budget consolidation – minus 1 percent… Thus, we get a 2 percent growth if to sum all this up and deduct from 8 percent (of the pre-crisis growth – Itar-Tass). This figure does not fit us: simple calculations demonstrate that by moving at a pace of 2 percent a year we simply will be unable to balance social obligations with resource opportunities, this is impossible.”

That’s why the government’s priority is “to double this figure,” the minister said.