MOSCOW (Sputnik) — The president added that the chief reasons behind sluggish GDP growth are the lack of investment, modern technology, professional labor resources, competitiveness and business climate problems.
"Two years ago we were faced with serious economic challenges, with an unfavorable global market conjuncture, with sanctions which were designed, as the saying goes, to force us to dance to someone else's tune and to ignore our fundamental national interests. I will, however, repeat, that the main reasons for the stalling of our economy are internal," Putin said in his annual Federal Assembly address.
Russian GDP Decline in 2016 to Be About 0.2 Percent
Russia's GDP decline will be about 0.2 percent in 2016, smaller than in the previous year, Russian President added.
"The decline in the non-financial sector has stopped, there is even an outline of a small growth in the industry sector. You know that, while last year our GDP declined 3.7 percent, I think, this year, it will be insignificant. It has been 0.2 percent in the ten months of 2016 and, I believe, it will stay this way."
Putin also stated that Russia has ensured its macroeconomic stability, kept and even enlarged its financial reserves.
"We have ensured macroeconomic stability. That is very important. We have kept our financial reserves."
The president added that the Central Bank reserves have grown.
"While in the beginning, on January 1, 2016, there was $368.39 billion, now there is $389.4 billion, almost $400 billion," Putin said.
Authorities Should Cut Number of Business Inspections
Russian President Vladimir Putin said it is necessary to reduce the number of inspections of businesses and increase their efficiency, as well as ensure open access to their results.
"I draw the government's attention: in the work of regulatory and supervisory bodies, the introduction of an approach based on assessment of risks should be expedited, which will make it possible to considerably cut the number of checks and increase their efficiency."
Industrial Production Growth Trend
Russia has witnessed a slight growth in industrial production in 2016, and it is important to keep this trend, Russian President Vladimir said in his annual address.
"There is a growth in industrial production. A slight growth, but the trend is positive and we, of course, will need to maintain it."
The President also noted that the downturn in the real sector of economy had stopped.
According to the Russian Ministry of Economy, industry growth rates in Russia will rise from 0.4 percent in 2016 to 1.1 percent in 2017, and up to 2.1 percent in 2019.
Farming Amid Western Sanctions
The Western sanctions and Russia’s countermeasures helped the Russian agricultural producers, but this will not last forever, Russian President Vladimir Putin added.
"Our so-called partners introduced sanctions, we [introduced] retaliatory measures. This helped our agricultural producers on the internal market, but we should not forget that this will not last forever."
The president added that Russia would go on supporting economic sectors in need.
"We will continue to provide targeted assistance to the sectors facing negative conditions."
