«Can not but cause concern,» Putin said about the slow growth of incomes of Russians

«Can not but cause concern,» Putin said about slow earnings growth russiancomrade link
22:25

Vladimir Agoev,
Nikita Bondarenko
26 August Vladimir Putin at a meeting on economic issues said about the slow growth of real incomes of the population. According to him, the observed dynamics is a concern of the government. The head of state instructed to provide concrete steps to improve performance and encouraged to achieve more dynamic economic growth.

  • © Ilya Naymushin/Reuters

Monday, August 26, Vladimir Putin during a meeting on economic issues demanded to propose concrete steps to increase incomes. The head of state expressed concern about the recent dynamics.

«Given the increase in wages in the economy the real income of people grows slowly. This situation cannot but cause concern», — stated the President.

The Russian leader also instructed to achieve a more sustainable and dynamic growth of the Russian economy. According to him, during the first half of 2019, the country’s GDP increased by 0.7%. Thus from January to July, industrial growth was 2.6%, including in manufacturing — 2%. As Putin said, economic indicators remain positive, but still not satisfy the country’s leadership.

At the meeting with the President, in particular, was attended by the first Deputy Prime Minister and Minister of Finance Anton Siluanov, Minister of economic development and trade Ministry Maxim Oreshkin and Chairman of the Central Bank Elvira Nabiullina.

According to the Ministry, from January to March 2019, real income decreased by 1.5% compared to the same period of 2018, but from April to June, this value increased 0.5%. Recall that the indicator reflects the amount of goods and services that citizens can purchase for a certain period of time.

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At the same time in Russia there has been a gradual acceleration in wage growth. According to the statistics of the Central Bank, between January and March real wages grew by 1.3% from April to June and 2.3%. This is stated in the economic review of the Central Bank.

Largely RT interviewed experts believe it is possible to improve the dynamics of real incomes in the future. So, according to senior analyst of information and analytical center «Alpari» Anna Bodrova, one of the factors to accomplish this may be to reduce the tax burden on business.

«Removing the tax burden from small and medium business will allow companies to invest a part of its financial resources for expansion. The result will increase the number of jobs and increasing the competition for skilled labor. Then slowly begin to rise revenues,» said Bodrov.

Moreover, as the expert on dynamics of incomes can affect the distribution of funds from the national welfare Fund (NWF). According to the analyst, the positive result can be achieved by investing money in infrastructure projects. First and foremost it is about creating economic zones and modernization of enterprises.

To see today the positive factors in the economy of the country Vladimir Putin attributed the slowdown in inflation. According to him, the rate of price growth gradually approaching the target at 4% and today is about 4.5%.

As previously stated the head of the Ministry Maxim Oreshkin, already by the end of 2019, the inflation rate may fall below 4%. Moderate growth of prices will become the reason for the Bank of Russia actively to reduce the interest rate.

Traditionally, the measure of the Central Bank stimulate business activity and economic growth in General. In the long-term decline in interest rates leads to cheaper loans, increase domestic demand and investment.

As explained in an interview with RT the head of the analytical Department AMarkets Artem Deev expected as a result of the actions of the Central Bank reduced loan and mortgage rates could lead to an additional increase in real incomes.

Moreover, the positive effect can be achieved through the implementation of national projects, including development of non-oil exports. According to the chief analyst GK TeleTrade Peter Pushkarev, more active entry of Russian non-energy companies on foreign markets will increase the profit of the national business and eventually will increase the income of workers.

«If we take care of the production of competitive and quality product, he will be able to find a niche and customers in neighboring countries-partners. This, in turn, raise for a start the level of income of employees of such manufacturers, gradually pulling for him and the average income of the rest of the population,» — said Pushkarev.

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