Siluanov announced the end of “Dutch disease” of the ruble – RBC

Siluanov announced the end of "Dutch disease" of the ruble – RBC

Russian Finance Minister Anton Siluanov

Photo: Fotobank / Getty Images

« On the Dutch disease is over, “- said in an interview Siluanov Bloomberg. “In real terms, the ruble is no longer overvalued, which was caused by excessive use of non-permanent income from oil and gas,” – the minister said.

Siluanov stressed that the real exchange rate, purified from the inflationary effect, returned to the level of the first half of the 2000s. Minister said the “Dutch disease” refers to the negative effect exerted on the industry appreciation of the national currency.

According to Siluanova, although the coming year will be a difficult and industrial production will be reduced, but the economy “complete adaptation” to the current conditions in the first half. He believes that the government must rein in spending and give more freedom to private enterprise, to stimulate economic growth.

«We have to decide what we want to see the economy in a few years – said Siluanov. – As far as fiscal policy, I’m sure we can come back to decisions whose adoption was delayed for a long time, because they were politically unpopular ».

« There is reason for optimism – said Siluanov. – If these conditions will be adopted and implemented an appropriate set of structural reforms, we will have a chance to go to higher and sustainable growth rates than those that we have seen in previous years ».

The Minister of Finance noted that to increase investment in industrial production and strengthening the role of the private sector to be predictable macroeconomic perspective, improving the business climate and public sector spending cuts.

According to Siluanova, fall in oil prices is a “structural and long-term” as opposed to “round-robin” recession in 2008, so Russia will have to live within our means. The Minister also spoke in favor of increasing the retirement age, which is one of the lowest in the world. According to him, his department proposes to raise the retirement age until it reaches the same level of 63 years for both men and women.

«The system of pensions and social support in Russia is one of the least effective, – said Siluanov. – We give social support and incentives right and left. ” He explained that the country has increased life expectancy and more elderly people at the same time work and receive a pension, while the working-age population is shrinking.