MOSCOW. March 14 (Interfax) - Economic growth of 7%-8% is possible in Russia by 2007-2008, German Gref, the economic development and trade minister, has said.
To achieve this sort of growth, Russia needs to reform and diversify its economy and achieve sustainable growth, Gref said during an expanded meeting of economic development ministry and other government officials. "This will be extremely difficult, but within the realms of possibility," Gref said.
Fewer words and more action are called for. This means changing the way the levels of government interact, Gref added.
Earlier at the session, Prime Minister Mikhail Kasyanov asked the economic development ministry to come up with a program to achieve this sort of growth.
As for high oil prices, Gref said these had a dual effect on the Russian economy. On the one hand, they enable the oil industry to invest and expand, and bring in budget revenue. "But they do nothing to stimulate reforms. They create an air of prosperity and strengthen the ruble's real rate, and that is not good for the manufacturing industry."