Russian economy in good shape: Medvedev

DAVOS, Switzerland - Russian prime minister Dmitry Medvedev on Wednesday dismissed challenging comments in saying its economy is in good shape and the country has already embarked on reforms.

In a session on Russia at the annual World Economic Forum in Davos, questions were raised that Russia may face some challenging scenarios, which Medvedev said were unfounded.

Russia's Prime Minister Dmitry Medvedev addresses the annual meeting of the World Economic Forum (WEF) in Davos, Jan 23, 2013. [Photo/Agencies]

In a video clip played before the session, it was mentioned that Russia, vulnerable to global changes despite rapid economic growth, was at a crossroads. Doubts were cast on energy prices, institutional reforms and Russian citizen's needs, which, according to some panelists, will present challenges to the country.

Some people expressed their concerns at the session that the Russian government may fall short of money in times of falling energy prices, leading to stagnation of the country's economy.

All the above-mentioned scenarios were not conducive, which is good because otherwise the Russian government could become satisfied, Medvedev commented. The scenarios are incorrect, he added.

Last year, Russia saw a GDP growth of 3.5 percent and registered a very low level of unemployment rate at 5 percent, one of the lowest in the developed world, said Medvedev, describing the economy as very satisfactory.

He disclosed that Russia aims to realize a growth rate of 5 percent in GDP, which necessitates a 10 percent growth of investment. "So Russia hopes to attract a large amount of foreign investment," he said.

By 2020, Russia hopes to make itself one of the 20 most favored countries to invest in across the world, Medvedev said.

He stated that Russia had started to take measures of reform, privatizing some state-owned companies.

"Russia is an open country and part of the global economy," said Medvedev. Russia aims to enhance energy efficiency, create more jobs and take on a sustainable development path, he added.