Economy Ministry issues forecast on investments in 2003

Investments in fixed assets are expected to grow 6.3-7.5 percent in Russiain 2003, depending on the economic development scenario (optimistic orpessimistic), a report of the Russian Economic Development and TradeMinistry says. This rise in investments is forecasted to be even higher -at 7.5-9 percent - in 2004 and at the same 7.5-9 percent in 2005. The firsteconomic scenario stipulates that investments in fixed assets will rocket28 percent in 2005 as compared to 2001. According to the second scenario,investments would surge 33.5 percent in 2002-2005. The Economy Ministryprepared this forecast on the Russian social and economic development in2003 and the main economic parameters for 2005 for the government meetingheld today.The report says that investments in fixed assets went up 6 percent in June2002 as compared to January, excluding seasonal factors. However, if wetake into account a significant drop in investments at the end of 2001 andespecially at the beginning of 2002, it will become clear that investmentsin fixed assets were not much higher than in the corresponding months lastyear. The total rise in investments this year is expected to reach 4.5percent against 2001..