Russian Federation GDP growth in 2005 may drop to 4.5% if there are no positive changes in the competitiveness of Russian companies. This was announced by the head of the Ministry of Economic Development and Trade of the Russian Federation German Gref at a government meeting.

He pointed out that the decrease in the competitiveness of Russian enterprises is evidenced by an increase in their costs. So, in 2004 the growth of companies' key costs for labor was 11.5%, for basic material costs - 28%.

According to the minister, if there are no positive changes in the competitiveness of Russian companies, and the government does not carry out effective reforms in this area, then in 2005. it is possible that GDP growth rates will decline to 4.5% even if oil prices remain high - at least $30 per barrel.

G. Gref also said that, in accordance with the forecast of the country's socio-economic development for 2005-2008, prepared by the ministry, GDP growth in 2005. is planned at 5.8%, and on average annual GDP growth in the period from 2005 to 2007. - 6.1%. According to the minister, “this is not enough to solve the previously set tasks” for the government.

In general, according to the minister, in 2004. Imports to the Russian Federation increased by 24%, engineering imports by 50%. At the same time, he reported that Russian exports had decreased in physical terms from 14% in 2003. up to 8% this year.

The head of the Ministry of Economic Development and Trade emphasized that the slowdown in economic growth is largely due to the lack of serious results in the implementation of the most important reforms in the Russian Federation. This also negatively affects business confidence in government. As G. Gref noted, the government is interested in preserving the potential of the transformations that made it possible to assign market status to Russia.

The Russian Prime Minister also agrees with the opinion about the need to increase the competitiveness of Russian enterprises. “Russia’s competitiveness is determined by the efficiency of companies and enterprises that produce products and services,” said Prime Minister Mikhail Fradkov, opening today a meeting of the Russian government, which is considering the country’s socio-economic development program until 2008. The formation of modern, efficiently managed, technologically and financially equipped enterprises is one of the main conditions for the development of the Russian economy.

In this regard, according to M. Fradkov, one of the main tasks of the government is the need to find tools to support such companies. The prime minister emphasized that Russia's competitiveness will depend on overcoming the technological gap, in particular by using "still existing competitive advantages and creating new ones."

However, the task of doubling GDP has not been removed from the agenda, Mikhail Fradkov emphasized. The Prime Minister of the Russian Federation noted that “our people expect to see and understand what this (doubling GDP) will mean for them, at what cost and how we will ensure it, how their well-being will increase.” In this regard, according to the Prime Minister, the program of socio-economic development until 2008. “must contain compelling and understandable targets” and answer the question “what will people get by 2008”. M. Fradkov emphasized that answering these questions is the government’s obligation to the citizens of the Russian Federation.

G. Gref: Growth of the Russian Federation's GDP in 2005. may drop to 4.5%