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Gref stressed the limitations of Russia's current economic growth model

Gref stressed the limitations of Russia's current economic growth model

At the St. Petersburg International Economic Forum, the head of Sberbank, German Gref, said that the current model of Russia's economic growth is simple and exhaustible. The increase in government spending caused an increase in wages and increased consumer spending, which in turn led to inflation due to a lack of increased production of goods and declining labor productivity.

President Vladimir Putin noted that it is important not only for Russia to achieve the fourth place in the world in terms of purchasing power parity, but also to maintain stable economic growth rates. In the first quarter of this year, economic growth amounted to 5.4% of GDP.

The World Bank has updated data on PPP (purchasing power parity), taking into account which Russia ranked fourth in the world, surpassing Japan and Germany. The country must reduce costs and increase labor productivity in order to maintain and strengthen its position in the global economy.

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