the National economic recovery plan focused on GDP growth not less than 2.5% by the end of 2021, the reduction of unemployment to 5% and the increase in real incomes. The plan was discussed during the online meeting, Prime Minister Mikhail mishustina with Russian President Vladimir Putin.
the implementation of the plan should begin in July, said the President. According to mishustina, the national plan contains “about 500 specific events. The cost of its implementation about two years will be about 5 trillion rubles.”.
the Plan consists of three stages. The first phase – stabilization of the situation until the end of the third quarter of 2020. “The main thing we need to achieve in this period is to prevent further decline in people’s incomes,” — said Mishustin.
the Second stage through the second quarter of 2021. “During this period”, according to mishustina, it is necessary “to complete the process of economic recovery, reduce unemployment, ensure growth of incomes to a level that is comparable with the level of last year.”
the Third stage – “this is the third or fourth quarter of 2021.” In this period, the government expects to “achieve sustained long-term economic growth.” Expected GDP growth above pre-crisis pace. “We will reduce poverty and will increase the number of citizens whose income exceeds the subsistence level. We will make every effort to the number of employed in small and medium-sized business has reached a crisis level,” — said Mishustin.
it is Planned to create a social Treasury for the targeted support of the population. The new Agency should improve the efficiency of care. We will introduce a single approach to calculate social assistance – given the composition of the family and its average income.
According to the Ministry of economic development, this year, real disposable incomes will decline by 3.8%, however, the following is expected to growingt 2.8%.
Russia’s GDP may fall in the second quarter by 8%, predicts the Bank of Russia. By the end of 2020, the Bank of Russia expects a decline in GDP of 4-6%. Under the baseline scenario of the Central Bank the budget deficit in Russia on the background of the coronavirus will amount to 5-6% of GDP. In 2019 Russian GDP grew by 1.3%.
