Russia's Economy: New Economic Growth Sources

Russian prime minister Mikhail Kasyanov pointed out Monday to the increasing role of new and more stable sources of growth in Russia's economy. Speaking at the 15th session of the consultative council on foreign investment in Russia, Mikhail Kasyanov named the growing domestic demand and intensified investment process among the sources. Mikhail Kasyanov noted that Russia's economy was becoming less dependent on outside economic factors. In his words, the consumer activity of the population has been reanimated--the people's real incomes are expected to reach 6.5 percent, and retail trade turnover is forecast to be 10 percent up in 2001. As to the investment, Mikhail Kasyanov stressed that its growth rate in the past months was quite comparable with the indices of the first half of 2000. At the same time, the prime minister expressed concern over the fact that the investments were largely oriented at the raw material sectors of Russia's economy. The five months that passed since the latest session of the council have seen macroeconomic stability, lower inflation and interest rates, increased currency reserves of the Central Bank. This year, the sustainable growth of the GDP is estimated to reach 5.5 percent.