Russia’s GDP Grows 4.4% Over Six Months

Russia’s economy grew by an estimated 4.4 percent in the first six months of the year, the Economic Development Ministry said on Tuesday.

“We’ll register a growth of 3.9 percent according to the results of the second quarter and this growth for the first six months will be over 4 percent, most likely, 4.4 percent,” Economic Development Minister Andrei Belousov said.

Russia’s State Statistics Service Rosstat previously reported the country’s GDP grew by 4.9 percent in the first quarter of 2012, year on year, to 13.491 trillion rubles ($414.87 billion) in current prices.

Russia’s economic growth rates proved higher than projected and the ministry intends to upgrade its economic growth forecast for this year, Belousov said.

The economic growth was facilitated by the quick rise in investment and rapid output expansion in manufacturing industries, he said.

The Economic Development Ministry cut in April its forecast for Russia’s economic growth in 2012 from 3.7 percent to 3.4 percent.

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

The IMF has cut its forecast for Russia’s 2013 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.


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