""We've been so focused on fighting inflation lately that we've somewhat forgotten about economic growth. Without economic growth, there will be nothing. We won't be able to solve social problems or anything else," German Gref, the CEO of Sberbank, told Russia's State Council on Demographic and Family Policy on Thursday. "All economic growth depends on two factors: labor productivity and the number of people employed," said Gref, who was Russia's economy minister from 2000 to 2007."
""In principle, it is achievable if we begin actively using artificial intelligence, robotics, and all other new technologies, but this requires significant investment and a major commitment to education, science, and so on," Gref said. However, "this will be difficult to achieve given the capital shortage and the high interest rates we have today," he added."
Policymakers concentrate heavily on fighting inflation, potentially sidelining the need for sustained economic growth. Economic growth depends on labor productivity and the number of people employed, both of which face mounting pressure. Wider adoption of artificial intelligence, robotics, and other new technologies could boost productivity but requires significant investment and commitments to education and science. Current capital shortages and high interest rates constrain investment and complicate technological adoption. High borrowing costs are choking lending and business investment. Recent monetary policy adjustments lowered the key rate to 16.5%, while near-term GDP growth is projected around 0.8–1.5%.
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