Elvira Nabiullina, President of the Central Bank of Russia, stated that state management of the structural transformation of the economy has dangers, saying: “The temptation to manage the structural transformation of the economy can lead us to suppress private initiative. There is no need to mention the danger of transitioning back to a planned economy,” she said.

Nabiullina, St. Petersburg International Economic Forum (SPIEF), made assessments on the evolution of the economy.

Explaining that the adaptation process in the Russian economy is continuing rapidly, Nabiullina said: “We will update our growth forecast for our economy in a positive way. We expect growth closer to the upper band of 0.5 to 2 percent this year,” she said.

‘It could lead us to repress private initiative’

Nabiullina also assessed the role of the state in Russia’s economy, saying: “The temptation to manage the structural transformation of the economy can lead us to suppress private initiative. Needless to mention the danger of moving back to a planned economy. “This is not possible because we have a market economy,” she said.

Stating that the transformation of the economy does not mean making huge investments in various sectors at the expense of budget spending and public debt, Nabiullina said that Russian companies have managed to keep up with the transformation of the economy. (AA)