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“A number of internal problems hamper our forward movement,” the prime minister said. “They are firstly infrastructure restrictions and low investment dynamics. There is also a serious need to renovate most Russian institutions.”
Economic growth was slower than had been forecast, Medvedev said. “We counted on a more considerable economic revival in the middle of the year. Unfortunately, the foreign economic situation made us revise the mid-term forecast,” he added.
“We also have to correct our inflationary expectations,” Medvedev added, assessing the current rate at 7.8%
In a wider review, Medvedev said industrial output had grown 1.3% over the first eight months of the year while agriculture had strengthened by nearly 5%
Real incomes had continued to rise, the labour market remained stable and unemployment was steady at about five percent of the economically active population against 5.7% last year, he added. State debt and the budget deficit were stable and healthy gold and currency reserves had been maintained.