- Sputnik International
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

Russian economic ministry adjusts 2006 forecast

MOSCOW, August 24 (RIA Novosti) - Russia's Economic Development and Trade Ministry has adjusted its forecast for 2006 and target figures for 2008, a spokesman for the ministry said Wednesday.

"Main macroeconomic figures remain unchanged," the spokesman said.

The government, having approved the ministry's general forecast of Russia's socio-economic development for 2006-2008 at its session August 18, sent it to the ministry for minor adjustments.

The ministry is forecasting a 5.8% GDP growth for next year, 5.9% for 2007, and 6% for 2008, with inflation at 7%-8.5% in 2006, 6%-7.5% in 2007 and 4%-4.5% in 2008.

The country's current economic growth will not allow its GDP to double by 2010, the goal that President Putin set, the ministry said.

"The GDP will grow by 25.8% in 2005-2008 compared with 2004," the ministry said in the document, highlighting the necessity of institutional reforms, improving the investment climate, reducing the tax burden on business and increasing investment both by the federal budget and the investment fund.

The ministry expects oil exports to decrease by 4%-5% in 2006 due to a slowdown in oil production. But in terms of value, Russia's oil export is expected to grow by 12%-14% in 2008, compared with 2004, due to the favorable situation on the world commodities markets.

The ministry said the EU countries, including Germany, The Netherlands, Italy, Britain, along with Switzerland and China will remain main importers of Russia's oil.

The country's innovational development envisages growth in oil and natural gas production and export in the next few years.

The ministry is forecasting oil production at 474 million metric tons in 2005, 487 million tons in 2006, 495 million tons in 2007 and 503 million tons in 2008, with oil exports growing from 268.6 million tons in 2005 to 292 million tons in 2008.

Natural gas production is also expected to rise from 640 billion cubic meters in 2005 to 673 billion cubic meters in 2008, with exports up from 203 billion cubic meters to 256 billion cubic meters in the same period.

To participate in the discussion
log in or register
Заголовок открываемого материала