IMF Cuts Russia’s 2013 GDP Growth Outlook

The IMF has cut its forecast for Russia’s2013 GDP growth outlook from 4 percent to 3.9 percent, but left unchanged its 2012 economic growth at 4 percent, according to the World Economic Outlook published on the IMF’s website on Monday.

The IMF also downgraded its forecast on Russia’s budget to a surplus of 0.1 percent of GDP in 2012 from its original forecast of 0.6 percent of GDP, and to a deficit of 0.7 percent of GDP from 0.3 percent of GDP in 2013.

The IMF expects Russia’s state debt to stand at 11.5 percent of GDP in 2012, compared with 8.4 percent of GDP projected in April, and at 11.3 percent of GDP in 2013 compared with the previous forecast of 7.9 percent.

Russia’s debt situation looks favorable compared to the other BRIC countries, where the state debt is expected at 22 percent of GDP in China, 68 percent of GDP in India and 64.2 percent of GDP in Brazil.

The IMF’s forecast is above the projections of the Russian Economic Development Ministry, which in April cut its forecast for Russia’s economic growth in 2012 from 3.7 percent to 3.4 percent.

In June, the Economic Development Ministry said it could revise upward by fall its GDP growth forecast to 3.7-4 percent from 3.4 percent.


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