At a Wednesday meeting with the Russian President, the minister said that for the six months of 2004, inflation totaled 6.7%.
Mr. Gref informed the head of state that on Thursday, at a government session, the results of economic development for the six months of 2004 will be considered. On the whole, he said, these results are "not bad." GDP for this period grew by 7.4%.
"Analyses of the growth of the gross domestic product prompted us to change the forecasts for the year and develop the budget on their basis," said the minister.
The growth of the industrial production in 2004, in his words, will exceed 7%. "By our calculations, industrial production for the year will total more than 7%, while it grew by 7.4% for the first six months," Mr. Gref said.
In the minister's words, on the year results, the rate of agricultural production will grow by 1-1.5%. Real incomes of the population will increase by 9.2% by the year's end; trade turnover in retail trade for the first six months grew by 11%. By the year's end, this figure, according to Economic Development Ministry estimates, is likely to reach 9%.
In Mr. Gref's opinion, the anticipatory growth of consumer demand is becoming an incentive of Russia's economic growth.
Noting the positive influence that high oil prices render on economic growth rates, the minister said that the population's consumer demand is in first place. Second place belongs to enterprises' investment demand, and oil exports is in third place.
According to the minister's forecast, by the year's end, the level of prices for oil will be $29 per barrel.
Most likely, this year's budget will receive additional revenues, and this means that the state will be able to fulfill its budget obligations in full, said the minister.
The President drew the minister's attention to the fact that the government must not diminish its efforts to preserve good indices. "The growth rate figures are pleasant, but one has to realize that they have been reached not only thanks to the work of the government, but due to favorable factors as well. That's why the government must work on creating conditions for further preservation of these good indices," said the head of state.
