Insufficient diversification stops the Russian economy from achieving and maintaining high growth rates, said Russian Prime Minister Dmitry Medvedev.
“The last year was not easy for Russia, with pressure coming both from economic and political factors. The bad situation on global markets remained almost throughout 2013,” Medvedev said during a government report to the State Duma.
While Russia inevitably felt the impact of the negative trends, it was not catastrophic, he said.
Nevertheless, global processes highlighted the most vulnerable spots of the Russian economy, the structural and institutional limitations which have piled up for decades, he said.
“These are primarily the insufficient economic diversification, low investment activity, public administration institutions falling short of modern quality standards. All this has so far prevented us from achieving and maintaining high growth rates,” Medvedev said.