Russian growth to slow this year, says finance minister
Russia's growth will slow this year as a result of the global financial crisis, the finance minister said Saturday, according to Interfax news agency.
By Agencies |
MOSCOW: Russia's growth will slow this year as a result of the global financial crisis, the finance minister said Saturday, according to Interfax news agency.
Gross Domestic Product (GDP) will rise between seven and 7.5 percent, and not the eight percent forecast, Alexei Kudrin said from Washington where he is attending a summit of the G7 (Group of Seven) seeking a solution to the crisis.
Growth next year should be "up to 5.7 percent," or one percentage point less than earlier predictions, he said, citing as reasons lower investment and a fall in orders from some trading partners, especially China.
"Of course we expect inflation to slow," Kudrin said. "Next year it will be below 11.8 percent, lower than this year.
Kudrin also underlined there was no need to cut oil production to prop up the free fall in petroleum prices.
"We don't need any steps to limit extraction," he said, adding that production would fall anyway because some fields were becoming exhausted.
As long as oil remained above 70 dollars a barrel, the state budget would be in balance this year.
On Friday the porice fell to 80 dollars in New York and touched 75 dollars in London, little more than half the record of 147 dollars reached on July 11.
Gross Domestic Product (GDP) will rise between seven and 7.5 percent, and not the eight percent forecast, Alexei Kudrin said from Washington where he is attending a summit of the G7 (Group of Seven) seeking a solution to the crisis.
Growth next year should be "up to 5.7 percent," or one percentage point less than earlier predictions, he said, citing as reasons lower investment and a fall in orders from some trading partners, especially China.
"Of course we expect inflation to slow," Kudrin said. "Next year it will be below 11.8 percent, lower than this year.
Kudrin also underlined there was no need to cut oil production to prop up the free fall in petroleum prices.
"We don't need any steps to limit extraction," he said, adding that production would fall anyway because some fields were becoming exhausted.
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As long as oil remained above 70 dollars a barrel, the state budget would be in balance this year.
On Friday the porice fell to 80 dollars in New York and touched 75 dollars in London, little more than half the record of 147 dollars reached on July 11.
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