GENERICO.ruEconomicsRussia should enter the top 4 economies in the world by 2030, said the Deputy Prime Minister

Russia should enter the top 4 economies in the world by 2030, said the Deputy Prime Minister

MOSCOW, March 14 By 2030, Russia should become one of the four largest economies in the world; for this, the country’s GDP needs to increase by approximately by 20%, said First Deputy Prime Minister of Russia Andrei Belousov.
“By 2030, our country should become one of the four largest economies in the world. Today, as is known, in terms of gross domestic product at purchasing power parity, the Russian economy ranks fifth. Calculations show that Russia can become the fourth largest economy in the world, ahead of Japan, with provided that sustainable growth is maintained at least 2% per year with a gradual acceleration by the end of the period to 3% per year. In the period until 2030, the country's GDP needs to be increased by approximately 20%,” he said during a meeting with members of the Russian government via videoconference . He also spoke about five mechanisms that will ensure such growth in the Russian economy.

Investment and labor productivity

First, according to him, it is necessary to increase labor productivity. “In conditions of personnel shortages, this is critically important. In addition, only through a high level of labor productivity is it possible to ensure sustainable growth in real wages in the economy, and therefore consumer demand for Russian goods and services,” noted the First Deputy Prime Minister.

He said that it is planned to carry out large-scale reengineering of business processes at enterprises in basic, non-resource sectors of the economy and social sphere. As part of this work, by 2030 at least 12 thousand enterprises and 288 thousand social institutions will be covered. In addition, the use of digital transformation processes of companies will be expanded.

The second mechanism for outpacing growth is investment. According to Belousov, the accelerated growth of investments will make it possible to maintain the instruments that have already been launched: agreements on the protection and promotion of investment, the introduction of a regional investment standard, and the provision of an investment tax deduction. In addition, ensuring the stability of the financial market.
“The third mechanism is to support and increase non-resource, non-energy exports in the markets of friendly countries… Support to exporting companies will be provided at all stages of the life cycle of an export project, and promotion of Russian products in foreign countries markets will be provided with preferential investment pre-export and trade financing,” Belousov said.

There will also be a promotion of Russian goods and brands under the auspices of the “Made in Russia” program; it is planned to assist private businesses in creating transport and logistics centers, industrial zones, and the necessary port, warehouse and demonstration facilities abroad.

Import substitution and SMEs

The fourth mechanism for accelerating growth is support for small and medium-sized businesses, Belousov continued.
“Finally, the fifth mechanism is the implementation of import substitution projects. Of course, import substitution itself is not an end in itself, but within reasonable limits it solves two problems at once – economic sovereignty and stimulating growth,” explained the First Deputy Prime Minister. Among the programs to support import substitution are systemic measures for import substitution of a wide range of products, including through preferential loans (within the framework of the cluster investment platform and the Industrial Development Fund).

“The second group of measures is the launch of technological sovereignty projects, which were discussed in the message. Each of them is aimed at the production of specific lines of high-tech products based on its own development lines. These projects are distinguished by ensuring guaranteed demand, orders for the development of critical technologies, personnel training and providing special support measures. Preliminarily, there will be 12 such projects, including machine tool building and robotics, new chemical materials, ensuring food security, new medical technologies. They will be supervised by relevant deputy prime ministers,” Belousov said.
“Implementation These mechanisms will allow the Russian economy not only to respond to current and future challenges, but also to enter a trajectory of further sustainable growth and ensure the achievement of the key goals outlined in the message of the President of the Russian Federation to the Federal Assembly,” Belousov concluded.

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