Putin says Russia passed economic recession

Putin says Russia passed economic recession


Russia has concluded the post-Soviet stage of development. Formation of the Customs Union and Single Economic Space with Belarus and Kazakhstan are the most significant step since collapse of the USSR, Russian Prime Minister Vladimir Putin said at the parliament, reporting on activities of 2011.

Putin expressed hope for further integration processes. He reminded that the Customs Union and lift of border barriers in 2011 increased trade turnover by 37% and 13% in January-February 2012. 

The Eurasian Economic Commission was formed for regulation of macroeconomy, custom fees and technical regulations.

The next step is formation of the Eurasian Economic Union in 2015. Russia, Belarus and Kazakhstan expect other partners to join the initiative.

Vladimir Putin, elected as the new Russian President in March 2012, promised to set road maps to realize he initiatives. He had a council on the topic in late March and ordered ministers to form road maps.

Putin wrote seven articles, describing his pre-electoral program. The first article was introductory, the second concerned ethnic issues, the third – economy, fourth – development of democracy and state institutions, fifth – social policy, sixth – Armed Forces, seventh – foreign policy and international relations.

The PM said that low birth rate of the 1990s will soon be overcome. He believes that sustainable success needs restoration of traditional values basing on families.

Putin emphasized that Russian economy has reached the pre-crisis level in early 2012. The GDP in 2011 reached 41.421 trillion rubles, compared with 41,277 trillion in 2008.

The GDP increased by 4.3% in January-February 2012, by 4.8% in February compared with the same period in 2011. The economic recession was graver than the one in 1998.

Putin said that Russian population reached 143 million, demonstrating positive demographic tendencies.

Over 7 million children were born in Russia in 2008-2011. More and more families give birth two second and third kids. The birth rate of second children increased by 45%, third by 62%.

The prime minister reminded that Krasnoyarsk reached a population of million people, Russia expects to have 15 such cities by the end of 2012. Voronezh will soon have the same population level.

Russia is the only G8 member with no deficit in 2011. The US had a deficit of 8.7%, Japan – 8.9%, France – 5.7%, Canada – 5%. Russian international reserves totaled $500 billion on April 1, 2012, the third largest gold and currency reserve.

According to the IMF, the state debt increased by 14% in 2008-2011, compared with 90% in the euro zone, over 100% in the US, Italy, 226% in Japan. China had the state debt of 27% of the GDP.

Russia had a surplus of 0.8% of the GDP. The total state debt is below 10% of the GDP. It is the best rate among G8, G20 and BRICS states, Vladimir Putin emphasized.



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