“If there will be a targeted structural policy, creating opportunities and incentives to improve productivity, diversify the economy, the growth rate will still remain low,” said Yudaeva, speaking on Tuesday, April 19, April international academic conference at the Higher school of Economics.
According to her, Russia was faced with problems that impede economic growth. “The first is demographics: now the working-age population is decreasing each year 900 thousand people. This cannot but affect the pace of growth. The Russian labor market was not ready to Mature workforce,” said Yudaeva, adding that Russian employers do not pay enough attention to training of employees over the age of 40-45 years.
According to Yudayeva, the necessary investments that ensure increased productivity. “This process is most commonly associated with the development of new companies in wiping out the outdated production. And this happens in a highly competitive environment,” she said. Yudaeva noted the low level of diversification of Russian exports: “In foreign trade of Russia specializes in the production of goods, where the accumulated excess production capacity, devaluation of the prices, and this situation will last for several years.”
Source of investment in the economy must be savings and foreign capital, said Yudaeva. “From the point of view of microeconomics for the implementation of specific investment project needs the money, that is why you may experience the illusion that to encourage investment of this money simply be printed. From the point of view of macroeconomics, investments are financed by savings and foreign capital inflows. In the absence of good investment climate savings go into investment, and capital outflow,” said Yudaeva (quoted by “RIA Novosti”).
In recent years the share of investment in GDP has been declining, Yudaeva noted: “in order to increase the share of investment in GDP, should contribute to the emergence in the economy of long-term investment resources with adequate profitability, optimize and increase the efficiency of government spending and to attract direct investment”.
“All this will have effect only if in parallel to implement policies that encourage business to increase productivity”, — said Yudaeva.
This is not an exhaustive list of structural measures that can be taken to increase potential economic growth and productivity, said Yudaeva. “In my opinion, it is important to note these problems in connection with the fact that we are dealing with a structural shift of the economy. The above limitations may contribute to the preservation of the existing economic structure and thereby to doom the economy, as they often say, eternal stagnation,” said Yudaeva.