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Moscow — Economic Development Minister Elvira Nabiullina said on Tuesday Russia is in the active stage of the crisis.
She stressed Russia’s economic growth slowdown estimated at 2.2 percent in 2009 is comparable to other countries – the United States (2.6-3.5 percent), Europe (2.1-3 percent) and Japan (5-5.1 percent).
At the same time the slowdown in many countries will be much bigger than in Russia, the minister said. According to estimates, in Ukraine it will deepen to 9-11 percent, in Latvia- to 11 percent and in Hungary – to 7-11 percent.
The rouble’s devaluation reaches 40 percent, while in other countries this figure is much bigger.
The main reason for Russia’s GDP reduction is the world economic crisis, but its depth depends on domestic economic conditions. Thus, among such reasons are non-diversity of economy and export, insufficient development of the financial system that has no long-term financial resources. For instance, Russia’s mid-term credit was available for 1.5 years, while in other countries – for 4 years and under less interest rates.
Nabiullina stressed that the creation of a buffer scheme was a right decision, but not much attention was paid to resolving economic development problems.
If the structure of the Russian economy changes, this would be the way out of the crisis, if not, the country’s economy will depend on fluctuations in other countries, in the U.S. and China in particular.
Photo: Economic Development Minister Elvira Nabiullina
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