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Economics ministry reduces GDP forecasts for 2007, 2009

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MOSCOW, February 19 (RIA Novosti) - Russia's economics ministry said Monday it has reduced its GDP growth forecast for 2007 to 6.1% from 6.2%, and for 2009 to 5.9% from 6%.

The Economic Development and Trade Ministry also said it has left its GDP growth forecast for 2008 and 2010 unchanged - 5.9% and 6.1%, respectively.

The ministry said direct foreign investment in Russia by 2010 could grow 41.9% on 2006, to $44 billion.

"The volume of direct foreign investment in 2006 was $31 billion, and it could grow to $44 billion by 2010," the Economic Development and Trade Ministry said on its Web site in its scenario for the country's social and economic development until 2010.

It also said inflation in Russia will be at 6.5-7% in 2008, 6.3-6.8% in 2009, and 5.8-6.5% in 2010.

Russia's national statistics body said January 31 that the country's gross domestic product grew by an estimated 6.7%, year-on-year, in 2006, to 26.621 trillion rubles ($1.002 trillion).

The economics ministry had earlier predicted GDP growth of 6.8% in 2006.

Inflation in Russia stood at 9% in 2006.

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