Vladimir Putin stated that the country's economy should ensure the growth rate above the average world level, which is, as he explained, a complicated task and a key direction for the new government.
"The increase of the economic potential of the country, every region is a key source of additional resources. We need an economy with the growth rate higher than the world's for that. It is not a wish, it is a basic condition for the breakthrough in the solution of social, infrastructure, defense and other tasks," Putin said in his annual address to the Russian Federal Assembly.
Putin specified that the low inflation rate gives Russia additional incentive for economic development.
"The inflation has lowered to the record low level of some 2 percent. Of course, we understand that the growth of prices for some essential goods still remains considerably higher, this should be strictly and with great attention monitored by the anti-monopoly service. But as a whole, such a low inflation level gives us additional opportunities for the development," Putin said during the annual address to the Russian parliament.
Putin recalled that in 2015, the inflation rate in Russia was almost 13 percent.
"Today, we have an opportunity to gradually lower loan rates, increase accessibility of loans without increasing inflation, by preserving accurate and responsible approach [to this issue]," Putin continued.
"At present, a new macroeconomic reality has been formed in Russia, implying the low inflation rate and the overall stability of the economy. For the [Russian] citizens it is the condition for the growth of real incomes, the decrease of the mortgage loans cost. For businesses, this represents predictability in work and less expensive loans," Putin pointed out.
According to official figures, in January, the inflation rate in Russia lowered from 2.2 percent from 2.5 percent in December. The Central Bank expects this rate to remain lower than 4 percent in 2018.
Additional to this, he stated that the growth of the labor efficiency should be no less than 5% a year, in order to be at the level of the leading world economies in 10 years.
He specified that the government's share in the economy should gradually decrease.
"We must radically improve the business environment, ensure the highest level of the business preferences. I will also point out the key position: the state's share in the economy must be gradually reduced," the president said during his address to the Russian parliament.