By 2020, Russia might reach average European living standard level

By 2020, Russia is likely to reach an average European living standard level, Russian Deputy Economic Development and Trade Minister Yuri Beletsky reported on Wednesday.

In his words, according to a forecast by the Ministry made for mid-term and long-term prospects, the tempos of economic growth in Russia will ensure a substantial increase of the population's living standards. In accordance with the optimistic forecast, the gross domestic product will grow by 70% by 2010 as compared to 2000, and by 2020 - by 180-190%, Beletsky noted. Annual tempos of GDP growth will be 5.4% correspondingly, he added.

According to the pessimistic forecast, by 2010 the GDP will grow by 50%, and by 2020 - by 130-140%, which corresponds to an average annual GDP growth rate at 4.3%, said the deputy minister. He stressed that was the lower verge of growth, below which there can be no normal development of economy and society.

According to the Economic Development Ministry forecast, the level of annual inflation is to reduce by 2010 down to 5-7% annually, and by 2020 to 3-5%. The economy's power intensity is also forecast to reduce by 2010 by 29%, and by 2020 - by 47-55% as compared to 2000, Beletsky said.