Putin will meet with the Cabinet of Ministers and will hold a meeting on the economy

© RIA Novosti / Michael Clientgenerated in Photobacterium of the Russian Federation Vladimir Putin. Archival photoPutin will meet with the Cabinet of Ministers and will hold a meeting on the economy© RIA Novosti / Michael Clientgenerated the image Bank

Russian President Vladimir Putin on Wednesday will hold a regular meeting with the Cabinet of Ministers and will discuss economic issues with the heads of ministries and departments, the press service of the Kremlin.

«Vladimir Putin will hold a regular meeting with members of the Government of the Russian Federation. On the agenda – the issue of higher wages to workers of budgetary sphere. It will also review the number of current order», — stated in the message.

It is also noted that at the meeting on economic issues the President will discuss with the heads of ministries and departments new tools to support economic activity and prospects for investment and technological development of the country.

The increase in wages

The may decrees of President Vladimir Putin’s plan to increase wages of doctors and teachers to 200%.

The education Ministry previously noted that before the Ministry has the task to 2018 to bring the salaries of teachers of high school up to 200%, salaries of school teachers now match the level of the average wage in the region.

Earlier, Prime Minister of Russia Dmitry Medvedev instructed the Ministry of labor, Ministry of Finance and Ministry of economic development until may 20 to prepare a draft Federal law on raising the minimum wage (SMIC) to a living wage.

In addition, speaking with the report in the state Duma, the Prime Minister assured that the government is taking all efforts, seek additional resources to increase salaries of Russians, especially those who work in education, health and culture that was embedded in the President’s «may decrees».

In addition, the heads of government set the goal in the next two years to increase the minimum wage (SMIC) to the level of the subsistence minimum.

In December the state Duma adopted in the second and third reading of a government bill to raise the minimum wage from 1 July 2017 4% to 7.8 thousand rubles. Previously the state Duma Committee for labour has said that he considers it necessary to entrust the government of the Russian Federation jointly with the Association of trade unions «to develop legislation for the phased increase in the minimum wage in the period 2018 and 2019 with the aim of bringing to the level of subsistence minimum».

Inflation and forecasts

Inflation in Russia in annual terms in April reached 4.1%, being just steps from the planned Central Bank target of 4%. In comparison with the March 0.1% in April, turnover rose 0.3%.

As explained in the CBA, it is associated with a small increase in food inflation, resulting from depletion of fruits and vegetables. The regulator does not exclude that in coming months the annual rate of growth of food prices will accelerate, but assured that the General increase in inflation is expected.

However, the world Bank lowered its forecast for Russian economic growth for 2017 to 1.3% in 2018 and 2019, expects a growth of 1.4%, according to a world Bank report on Russia, published on Tuesday.

Last fall, the world Bank projected GDP growth in Russia by 1.5% in 2017, and 1.7% in 2018.

New medium-term forecast of the world Bank as a whole favorable for Russia. Analysts expect the slowdown in consumer inflation in Russia to a level slightly below 4% by the end of 2017 and its stabilization close to 4% in 2018 or 2019. Low inflation, in their opinion, support the real level of wages, which will be the main source of growth in real incomes. The expected increase in consumer spending of 1.8% in 2017 and 2.5% in 2018 and 2019. In years 2017-2019, the expected revival of investment demand.

Source