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November 19, 2019

Russian Ministry of Economic Development prepared new measures to increase labor productivity

labor productivityThe Russian Ministry of Economic Development has prepared new measures to increase labor productivity. The agency’s proposals are part of the plan to accelerate the growth of Russia’s Gross Domestic Product (GDP). According to the main forecast by the Ministry of Economic Development, the productivity growth will accelerate from 1.6% in 2018 to 1.9% in 2020. But in the optimistic scenario, incentives are expected to grow faster – 2.9% in 2020.

The increase in productivity under the optimistic scenario should add 0.15 percentage points to GDP growth in 2018 and 1 percentage point. In 2021, assess the ministry.

The implementation of the program for four years will cost about 30 billion rubles.

The laws required to implement the program must be adopted by March 15, 2018 and the measures are divided into two directions. The one focuses on improving business conditions, creating a federated competence center, reducing administrative barriers and boosting productivity. In the other, the pilot projects involving selected companies will take place and the state will pay their consultants.

In June, the Ministry of Economic Development has released a draft program to increase labor productivity in Russia, which will require 29 billion rubles.

Russian wages grow with a higher percentage of labor productivity in the country, which may lead to faster inflation and slower GDP growth, estimates the Central Bank of the Russian Federation.

According to Russia’s statistics office, Rosstat, since 2009 the labor productivity has grown twice as slower than the real wages.

In 2012, President Vladimir Putin instructed the government to increase labor productivity by 1.5 times over the next seven years.

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