On 6, April, 2012 in Moscow Minister Elvira Nabiullina and Minister of Economy of Republic of Belarus Nikolay Snopkov held a joint meeting of the Board of the Ministry Economic Development of the Russia Federation and the Board of the Ministry of Economy of Republic of Belarus
Russia Cuts GDP Forecast to 3.4%
MOSCOW, April 6
Russia's Economic Development Ministry has cut its 2012 gross domestic product forecast from 3.7 percent to 3.4 percent, Economic Development Minister Elvira Nabiullina said on Friday.
The forecast was reduced partly owing to a revised investment forecast for this year, down from 7.8 percent to 6.6 percent.
"This is one of main reasons why we lowered our GDP growth forecast to 3.4 percent from 3.7 percent," Nabiullina said.
Consumer spending will remain a core factor in growth in the next few years, she said.
"Our economy will grow by 4.1 percent per year on average, higher than the world economy's 3.7 percent expected increase," she said.
International ratings agency Standard & Poor forecast in February that Russia's gross domestic product growth would slow to 3.5 percent in 2012.
Last year, Russia’s GPD grew by 4.2 percent, the world’s third-highest growth rate among leading economies.
Russia cuts 2012 growth forecast to 3.4 percent
Russia's economy will expand more slowly than anticipated this year due mainly to less a buoyant rate of growth in investments, the country's economy minister said on Friday.
Elvira Nabiullina told ministers she was cutting the GDP forecast to 3.4 percent from an earlier 3.7 percent, according to a statement.
Her deputy Andrei Klepach said last month Russia's economic growth forecast might be cut but gave no figure. In 2011, the economy grew by 4.3 percent.
Nabiullina said the cut stemmed from a lower projection for investment growth of 6.6 percent, down from an initial 7.8 percent.
The new projection signals a sharper slowdown from the fourth quarter of 2011, when growth hit 4.9 percent partly due to higher state expenditure ahead of December's parliamentary elections.
In the run-up to last month's presidential vote, Russia's GDP grew by 4.8 percent in February year-on-year after rising by 3.9 percent in the previous month.
Earlier this week, the economy ministry raised its forecast for average oil prices in 2012 to $115 per barrel from a previous estimate of $100 per barrel, edging closer to current Urals blend levels of around $123 per barrel.
The government initially envisaged a budget deficit of 1.5 percent of gross domestic product (GDP) in 2012, while Finance Minister Anton Siluanov said this week that the budget could end the year in the black if external conditions stay positive.
Central bank Chairman Sergei Ignatyev said on Thursday that it will be difficult to keep this year's inflation rate in a range of 5-6 percent adding the regulator still sticks to its initial projection.
Nabiullina said on Friday the ministry sees inflation within the 5-6 percent corridor this year.