Alfa Bank President Peter Aven says Russian economic growth is “sustainable and underlying indicators are encouraging for the future.”
03 Apr 2003
Speaking before the 6th Annual Russian Economic Forum in London, Peter Aven reviewed economic developments in Russian with a positive tone. Most encouraging, according to the former Minister of Foreign Economic Relations, is the fact that much of Russia's GDP growth is now being driven by growth in the service sector - a key sign of economic health and maturity. "An economy in which the services are a key driver of GDP growth is an economy which has a bright future." Additional positive news cited by Aven is the fact that Capital Flight is steadily decreasing "as more and more Russian firms invest in a Russian future."
Citing items on the agenda of "unfinished business" Aven reminded delegates that liberalization of the Russian economy is still a "work in progress." Substantial new efforts are needed in the area of banking reform, reform of state monopolies, and fiscal reform.
Of particular concern to Aven are barriers to the creation and profitability of Russian small businesses. "Throughout Europe SME's are key employment drivers, absorbing more than 50% of the workforce. SME's in Russia employ only 15% of the workforce and we need to do more - much more - to help small businesses development in Russia."
On the international economic front, Aven, who has just returned from a week of meetings with senior government leaders in Washington, noted that US officials are "encouraged" by developments in the Russian economy, while at the same time concerned about tensions in US - Russian relations. Despite current differences over Iraq, Aven expressed confidence that Russian and Western business leaders can focus on "common, shared objectives" which will strengthen overall ties.
The annual Russian Economic Forum brings together over 1,000 senior Corporate Leaders, Government Officials and Economists to discuss developments in the Russian economy.
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