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Putin instructs cabinet to launch new investment cycle to boost Russia’s economic growth

The President noted that last year, Russia's GDP growth totaled 1.3%, while in the fourth quarter of 2019, its dynamics increased to 2.3%.

MOSCOW, February 12. /TASS/. President Vladimir Putin marked positive trends in Russia’s macroeconomic indicators and instructed the government to launch a new investment cycle, which will help the national economy grow above the global average.

"Our common main task is to make economic growth more solid, high-quality and sustainable, taking into account external challenges and risks," the head of state said at a meeting on economic issues on Wednesday.

He called the high rate of economic growth the basic condition for successful social development, creation of new jobs, growth of incomes of Russian citizens, as well as for the positive demographic changes Russia needs.

The President noted that last year, Russia's GDP growth totaled 1.3%, while in the fourth quarter of 2019, its dynamics increased to 2.3%.

"The key indicator such as the industrial production index is up 2.4% last year; agricultural production added four percent, retail sales are growing," Putin noted.

"Inflation dropped to three percent in 2019, now it is 2.4% in annual terms. Unemployment is at a reliably low level: 4.6% on average over the past year," the head of state added.

Putin recalled that the safety margin of the country's economy and financial system is guaranteed by accumulated reserves.

According to him, the amount of the National Wealth Fund exceeds $125 billion, while the international reserves amount to $560 billion. "All these factors provide us with macroeconomic stability and make the national economy less sensitive to changes in the global environment," Putin concluded.

New investment cycle

President Vladimir Putin instructed the government to launch a new investment cycle so that the country's economy can grow faster than the global economy in 2021.

"The main task of the economic agenda is to launch a new investment cycle, to achieve an annual investment growth rate of at least five, and preferably five to seven percent, to ensure economic growth rates above the world level next year," he said at a meeting on economic issues.

"In this respect, I am counting on the joint work of the government and the Bank of Russia," he added.

Putin drew attention to the fact that each percentage point of investment growth means new jobs and modernized jobs, as well as additional demand for professional and qualified personnel with decent wages, not only in large cities, but throughout the country.

He invited the participants of the meeting to share their ideas about what needs to be done in the near future to improve the business and investment climate.

"This has always been on our agenda in recent years, but we need to update these tasks, in particular to adopt the laws that were mentioned in the Address [State of the Nation Address to the parliament in 2020]," Putin said.

The President also stressed that all the social and investment plans stated by Russian authorities should be supported with funding in full scope.

"All the declared social, investment plans must be supported with funding to the full extent," he said.

The meeting was attended by Prime Minister Mikhail Mishustin, Head of the Presidential Administration Anton Vayno, First Deputy Prime Minister Andrey Belousov, Presidential Aide Maksim Oreshkin, Heads of the Energy Ministry, Economic Development Ministry, Finance Ministry and the Central Bank.