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Russian economic growth rate to depend partially from Crimea situation

“The World Bank forecasts more than 1% economic growth in the country,” Russian First Deputy Prime Minister Igor Shuvalov says

Igor Shuvalov ITAR-TASS/Anton Novoderezhkin

Igor Shuvalov

© ITAR-TASS/Anton Novoderezhkin

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MOSCOW, April 14. /ITAR-TASS/. Russian economic growth rate in 2014 will depend partially from developments in the Russian Republic of Crimea, Russian First Deputy Prime Minister Igor Shuvalov said in an interview with magazine Forbes on Monday.

“The World Bank forecasts more than 1% economic growth in the country,” he recalled, noting that “By the way, this is not worst scenario. We have more pessimistic assessments in the country. But I will not dare to give some tough forecasts.”

“The situation is changing,” Shuvalov said, noting that “We should decide how and from which reserves we will invest in socio-economic development in Crimea. Now we are considering funding of state programmes until the end of political cycle that is until 2018. After this I would make forecasts of further economic growth.”

The first deputy prime minister noted that debate was in progress in the government “between those who insist on higher state expenditures and those who want to have a more responsible macroeconomic policy.”

“There are two points of view about what is better: now to endure lower economic growth rate, but to reach a higher rate a little bit later or to boost growth now that will probably create more risks in the future,” he added.

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