Russian Federation

Current economic model exhausted says Minister


Published

The Moscow Times reports Economic Development Minister Alexey Ulyukayev as saying that “The current [economic development] model, which depends on growing demand and positive global economic conditions, which translate external demand into domestic demand, has exhausted itself.”

The Minister continued “Currently we have negative 1.3 percent growth of investment capital. GDP growth is 1.5 percent in the first eight months of the year. Industrial output growth is zero.”

But Deputy Prime Minister Dmitry Rogozin, who also spoke at the Russia Calling! Forum on Tuesday said that the defence industry was doing well. “Military industrial output in 2012 grew from 7.5 to 14 percent depending on the specific segment, as compared to the previous year’s results. Moreover, half year results for 2013 give grounds to expect production output for this year at the level of 2012” the Minister is reported as saying.

However, Deputy Economic Development Minister Sergei Belyako reported that the number of people wanting to set up their own small businesses was just a few percent. . “People want to work either for large state companies or become government officials; which means they do not see an opportunity to make money based on their own actions or potential.”

You can read the full article in The Moscow Times here.

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