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Russia`s economics ministry updates GDP forecasts


Russia`s economics ministry has raised its official forecasts for the country`s GDP growth until 2010, a ministry official said on Tuesday.

The figures have been updated to take into account higher projected industrial output and world oil prices.

The 2007 forecast was raised from 7.3% to 7.4%, from 6.4% to 6.6% for 2008, from 6% to 6.3% for 2009 and from 6.3% to 6.4% for 2010, Deputy Economic Development and Trade Minister Andrei Belousov said.

"We have specified an estimate for oil prices, which will average $60 per barrel as of the end of 2010," Belousov said.

Belousov failed to give figures for a specified industrial output forecast but said the ministry had carried out an analysis into production dynamics and came to the conclusion that the domestic industry, especially the chemicals sector, machine-building and agri-business, would produce more import-replacing products in the future.

"This conclusion allowed us to review upward the GDP growth forecast," Belousov said.

In a report published in early November, the World Bank said that Russia`s economy was now growing at maximum capacity, boosted by high global energy prices and a strong inflow of foreign capital.

In 2006, Russia`s GDP grew 6.7%.

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