#4
strana.ru
December 27, 2001
In 2001 Russia registers one of the world's highest GDP growth rates, Prime Minister Kasyanov
By year-end Russian GDP growth will exceed 5%

In 2001, Russia registered one of the world's highest GDP growth rates, over 5%, Prime Minister Mikhail Kasyanov told this year's last government meeting Thursday.

"We are finishing the year with good results, although there are certain drawbacks," he said.

In his words, the Russian economy's dependence on exports declines, although it still remains sufficiently high. Real incomes grew 6% in the current year and more than 15% over the two previous years.

"The growth of real incomes formed the consumer demand, which is one of the chief sources of economic growth," he said.

At the same time, there are "certain disproportions" in evidence in this sphere, he added. Specifically, "The rate of growth of real incomes exceeds labor productivity growth rate," he said. Besides, "not quite competitive" Russian industry fails to satisfy the growing demand, which leads to an increase in imports.

To quote the Prime Minister, the industry has registered the highest level of circulating assets in the last ten years. The average profits in industry in the outgoing year were 11-12%. He stressed at the same time that so far a great part of profits were created in the mining industries.

Russia's international ratings grew to the level, which had been before the August 1998 crisis, he said. Besides, the country's debt obligations grew in price. The Russian corporate sector now had a chance to borrow in order to make investments into the real sector of the economy.

The natural monopolies, which until recently had been in the red, were gradually emerging in the black, he claimed. "The tariff policy in the natural monopolies is pursued in a more sensible manner," he said.

According to Mr. Kasyanov, tariff policy principles for next year will be finally shaped in early 2002.

"The year was one of the most stable ones," he said. The work on the main principles of the economic policy for next year will be accomplished early in 2002. The Government managed to "create a good mid-term foundation for building up the rate of change," he said.

He also noted as important the creation in the outgoing year of new transport arteries for the export of Russian energy resources: construction work continues on the bed of the Black Sea, where the Blue Stream gas pipeline is being laid; the Baltic Pipeline System project has been completed and Vladimir Putin is going to attend its inauguration Thursday.

Last year saw greater rapprochement between Russia and the European Union; there was a boost in negotiations on Russia's accession to the World Trade Organization. It also became possible to solve many problems involving CIS countries, specifically to finally settle Ukrainian gas problems.

The Prime Minister also went on record as saying that a model had been developed for an accelerated rapprochement between Russia and Belarus within the framework of the Union State. In his words, the agreements the sides reached must be filled with concrete results in the first quarter of next year "for the rapprochement to proceed at an even faster rate."

He also stressed that in 2001 the Government "managed to find a common language with the Parliament in practically all directions," due to which, "it became possible to create a firm foundation for the mid-term."

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