Russia’s Central Bank Alarmed by Slow Growth Rates

MOSCOW, April 3 (RIA Novosti) – The Central Bank is seriously concerned by a notable slowdown in Russia’s economic growth, the bank’s head Sergei Ignatyev said on Wednesday.

The slowdown was observed last year, and especially at the start of the current year, he said.

From January to February, Russia’s GDP grew by a mere 0.9 percent, compared to last year’s growth of 4.3 percent in the same period, while in February growth rates dropped to 0.1 percent.

Industrial output in the first two months of 2013 fell 1.5 percent, Ignatyev told a congress of the Association of Russian Banks, saying that was “an unpleasant surprise.”

He cited unfavorable demographic factors, the world economic crisis and the poor state of Russian infrastructure among the causes of the slowdown.

“An unfavorable investment climate and the related net capital outflow, low volumes of private investment – none of that is conducive to economic growth,” Ignatyev said.


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