Russia Cuts GDP Forecast to 3.4%

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.

 

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