St. PETERSBURG, June 5 – Trend Wire. Changes in the structure of budget expenditures, personnel shortages and tight monetary policy are the key challenges for the Russian economy today, Deputy Prime Minister Alexander Novak said at the Sberbank business breakfast at SPIEF.
“Given the cyclical nature of the economy, it is important to manage, in my opinion, risks and look for those new drivers that provide additional opportunities for entering a sustainable trajectory of economic growth. And, of course, if we talk about risks, one of the most important risks, the most significant, is the shortage of personnel and the lag in labor productivity growth from wage growth,” Novak noted.
He named the change in the structure of budget expenditures as the second factor. According to him, in recent years there have been very serious injections in the form of budget investments into the economy, into technological development, and into the social sphere.
“And here, I think, what the government is doing today to consolidate the budget, to prioritize spending, is an important component in order to create conditions for economic growth and opportunities for lending to the economy,” Novak added.
“Another risk is high inflation and tight monetary policy. This is a consequence, among other things, of the continuation of those risks that we identify as key,” he added.
The St. Petersburg International Economic Forum takes place from June 3 to 6. Trend Wire acts as the general information partner of the forum.
Source: Ria