В.Путин.Совещание с членами Правительства.10.12.07.Part 1

Meeting with the Government Cabinet.Part 1
December 10, 2007
The Kremlin, Moscow

Совещание с членами Правительства.
10 декабря 2007 года
Москва, Кремль

Economic Development and Trade Minister Elvira Nabiullina on updated forecasts for social and economic development for 2008-2010

ELVIRA NABIULLINA: We have updated the three-year social and economic development forecast for the country for 2008-2010. Overall, the updated forecasts have been revised upwards. We have updated the GDP growth rate and estimate that it will grow by 6.6 percent in 2008. Our September forecast was for GDP growth of 6.4 percent. We have also revised upwards the GDP growth forecast for 2009 from 6 percent to 6.3 percent, and for 2010 from 6.3 percent to 6.4 percent.




These revised figures take into account the positive growth over this year and our more optimistic assessment of the foreign economic situation. They also reflect our reassessment of the industrial output growth rate. We have revised industrial output growth upwards from 5.2 percent to 5.7 percent in 2008, from 4.9 percent to 5.5 percent in 2009, and from 5.2 percent to 5.6 percent in 2010. These figures are based on our assessment of the impact made by investment growth over 2005-2007. This increased investment is making our industry more competitive and creates opportunities for us to replace imports with local goods over 2008-2011. We have seen the greatest positive effect in the machine-building sector, which has the highest growth curve. Our updated figures raise the growth forecast in the machine-building sector from 8.2 percent to 13 percent in 2008, from 7 percent to 11.8 percent in 2009, and from 6.7 percent to 13 percent in 2010. We also see a positive trend in the chemicals industry and have revised the forecast upwards accordingly for 2008, 2009, and 2010.

This revision of growth rates for GDP and industrial output in the different sectors gives us reason to expect that we will be able to keep entirely within the parameters set out in the three-year budget.

Deputy Prime Minister Dmitry Kozak on the Governments upcoming examination of the federal targeted programme for developing southern Russia

DMITRY KOZAK: The draft programme for developing southern Russia has been submitted to the Government and is due to be examined on Thursday. Total financing from the federal budget comes to 52 billion roubles. The programme will be implemented over a 4-year period, from 2008 to 2012. Unlike previous programmes, this programme puts the emphasis on removing infrastructure bottlenecks in the way of business development. This means, above all, comprehensive development of industrial sites and a co-financing programme to provide assistance for this development in practically every region. In other words, this is a programme for economic growth that differs to past programmes, which channelled most of their funds into dealing with social issues.

The programme also has a social component but it is not as prominent. We addressed social issues during the preceding period.

VLADIMIR PUTIN: Do you think that you resolved all the social issues over that period and do not need to give them attention now?

DMITRY KOZAK: We did not resolve every problem, of course.

VLADIMIR PUTIN: Go back and take a closer look at everything: all of the economic measures we take ultimately need to have social results, have an impact on the social situation. Make sure you analyse the programme from this point of view when the Government examines it.

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  News & Politics

[Tom Denman]

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