President Vladimir Putin said that the past year was successful for the Russian economy. The financial system had been stable and GDP had increased by 7.6%. The federal budget surplus reached 3.6% of GDP. The scale of investment drawn in 2007 accounted for 3.3% of GDP, which puts Russia among the most appealing countries for investments in the world.
Mr Putin believes that one of the major results is the more than 10% increase in real per capita incomes. The share of the population with the incomes below the poverty line has been reduced to 12%-13%.
The President noted that Russia’s economic success in 2007 should not be wholly attributed to high oil and gas exports. Partly, it has been achieved by the better performance of many industries and Russian business in general. Thus, economic modernisation has stepped up machine-building. But he warned that the Government will still have to do much to accelerate its development. Mr Putin noted the advances made in the chemical industry, timber and pulp-and-paper production, and the agro-industrial sector. In 11 months, Russia has built almost 30% more housing than a year before.
Talking about plans for 2008, the President emphasised that Russia must use its amassed economic potential to become more competitive, in particular, to support its technological and innovation performance, and develop its transport and energy infrastructures.
Mr Putin said that in 2008 Russia should concentrate on reducing inflation, develop its banking system and financial structures. It is very important to increase the salaries of budget sector workers and the remuneration of those serving in the armed forces, and to upgrade the pensions of military pensioners. Having been declared the Year of the Family, 2008 should help Russia promote its demographic strategy.
President Putin also stressed that during the presidential elections, all state institutions should continue displaying reliable and streamlined operation.
He wished the members of the Cabinet and the Presidential Executive Office a happy New Year and thanked them for their tireless work.