Reasons for slowing of economic growth should be analyzed – Medvedev

(Interfax – MOSCOW, April 8, 2013) Russian Prime Minister Dmitry Medvedev said production growth slowed down in Russia in early 2013 and called for the formation of a new economic growth model.

Medvedev recalled at a Finance Ministry collegium on Monday that the positive growth of the Russian economy, which has been observed since 2009, seriously slowed down in the first two months of 2013 and GDP went up 0.1% against February 2012.

“The main reasons are clear: the decrease of protection, unfortunately, the low dynamics of construction, retail trade, commercial services, and also the slowdown of general investment activities,” Medvedev said.

Medvedev said there is a need for a serious analysis, adding that “the decisions made earlier will probably need to be adjusted.”

Medvedev recalled that the EU problems, the increase of food prices in the world and other factors have considerable influence on the Russian economy.

“All these problems have led to the inclusion in the agenda of the issue of the formation of a new growth model,” Medvedev said.

Medvedev reiterated that he is talking about modern technologies, which will help dramatically reduce production costs, the search for a new social policy, and institutional change.

“We should make changes to our industrial development, but not in the way we did it in the 1930s, but by large-scale introduction of innovations and boosting the quality of life,” Medvedev said.

In this situation, there is a need to stay loyal to the inflation targeting policies and the decisions made earlier, such as the decision to create an international financial center in Moscow and a unified financial market regulator, he said.