The Deputy Chairman of the Bank of Russia Alexey Zabotkin emphasized that the potential economic growth rates do not depend on monetary policy, they are influenced by demography, labor force, and the efficiency of institutions. The Central Bank of the Russian Federation expects an increase in the rate of potential growth of the Russian economy in the medium term against the background of the implementation of government measures, said Deputy Chairman of the Bank of Russia Alexei Zabotkin at a conference on Wednesday.
“We expect that the potential growth [of the Russian economy] will accelerate over the medium term as the government implements certain measures”, he said. Zabotkin stressed that the potential economic growth rates do not depend on monetary policy; they are influenced by factors such as “demography, labor force, efficiency of institutions, and more”.
Earlier, the Minister of Economic Development of the Russian Federation Maxim Reshetnikov noted that the growth of incomes of the population, investment and export potential would allow Russia to reach economic growth rates above 3%, without additional measures on the horizon until 2030, growth would have amounted to an average of 2% per year.
Potential GDP is an unobservable indicator that implies the maximum level of output with full use of all factors of production and normal capacity utilization.