"Formally, the recent growth of the global economy is marked by positive values: in 2011-2018, the annual growth averaged 2.8%, in recent years it was slightly more than 3%. But, in our opinion, the leaders of states, we all need to frankly admit: despite this growth, the existing model of international economic relations, unfortunately, is still in crisis," the head of state said at the plenary session of the St. Petersburg International Economic Forum (SPIEF).

ST.PETERSBURG, June 7. /TASS/. Russian President Vladimir Putin believes that the current model of world economic relations is in crisis, although the global economy has been growing in recent years.

According to the Russian leader, after the end of the Cold War, the inclusion of new markets in the globalization process changed the architecture of the world economy dramatically.

"The dominant development model based on the Western, so-called liberal tradition, let's call it Euro Atlantic, began to claim not just a global, but a universal role," Putin said.

According to him, the world trade was the main driver of the current model of globalization between 1991 and 2007, the growth of the world trade exceeded the growth rate of the world GDP more than 2 times.

The Russian president attributed this fact to the opening of new markets of the former Soviet Union, the countries of Eastern Europe, which began to receive flows of goods.

"However, by historical standards, that period was relatively short and was followed by the global crisis of 2008-2009, which not only aggravated and revealed imbalances and disproportions, but also showed that the mechanism of global growth began to fail," the head of state said.

Putin recalled that the global community then carried out serious correction work.

"However, let’s face the truth, they failed to show enough will, and perhaps courage, to fully understand what was happening, to draw the appropriate conclusions. A simplified approach prevailed - the model of global development itself is quite viable, nothing essentially should be changed and it is enough to eliminate the symptoms and partly coordinate the rules and institutions of the world economy and finance, and everything will be fine, "Putin said.

The Russian leader noted that in those years "there were many hopes and positive expectations, but they quickly vanished."

"The policy of quantitative easing and the other measures that were taken did not solve the problems in essence, but only pushed them into the future," the Russian leader concluded.