Kremlin unveils Putin-Macron talks agendaRussian Politics & Diplomacy May 23, 15:16
Syrian opposition faction leader warns Geneva talks may break downWorld May 23, 15:10
Russia's top diplomat says Syria settlement requires Iran’s participationRussian Politics & Diplomacy May 23, 14:38
Four men and a dog: How Papanin’s team conquered the North PoleSociety & Culture May 23, 14:20
World Bank predicts investments in Russia’s fixed assets to surge to 2% in 2017Business & Economy May 23, 14:16
Manchester shopping mall evacuated following terror attackWorld May 23, 13:44
Lavrov warns Syria’s plight will drag on if efforts to divide it continueRussian Politics & Diplomacy May 23, 13:41
Forces behind Manchester attack seek to spread panic across globe, Russian think tank saysRussian Politics & Diplomacy May 23, 13:31
Russia's Black Sea Fleet holds drills in MediterraneanMilitary & Defense May 23, 13:27
MOSCOW, June 3. / TASS /. The former Russian Finance Minister and the head of the Civic Initiatives Committee think-tank Aleksei Kudrin said that the fall of the Russian economy this year will amount to roughly 4%, he said Wednesday speaking at the Federation Council.
"The Ministry of Economic Development expects this year's GDP to decline by 2.8%. I think the fall will be deeper - roughly 4%," he said.
Thus, according to Kudrin the Russian economy is in a full-fledged crisis "in all existing parameters."
Investments in fixed assets this year are falling almost like in the time of crisis in 2009, the real effective ruble exchange rate is now down by about 15%, "it is three times worse than in 2009," Kudrin said.
Besides that, about 500,000 people can lose their job in Russia during the crisis.
Speaking about the negative factors that affect the Russian economy, Kudrin noted that the sanctions factor "takes away 1% to 2% from the GDP."
In general, according to him, another factor affecting the low rate of economic growth in Russia besides sanctions is the lack of structural reforms and low oil prices.
Kudrin said that the current economic model, which was based on oil revenues and allowed to increase consumption without seriously improving production technologies, has exhausted itself and needs to change.
According to Kudrin, it is necessary to reduce defense spending and to increase investment in human capital - spending on education, science and healthcare.