Russia's GDP To Grow By Over 5.5% In 2001

The rate of GDP growth will exceed 5.5% in Russia in 2001, Russian Prime Minister Mikhail Kasyanov said at today's meeting of the Advisory Council for Foreign Investments. According to him, the past few years were a time of economic stability is Russia, characterized by a reduction in the inflation rate and stable GDP growth. Kasyanov especially emphasized that the recent growth in the GDP is due to a rise in the consumer demand related to an increase in real incomes of the population (whose rate is to reach 6.5% this year), as well as to an active growth in investments in the industrial sector of the economy of Russia. Kasyanov underlined that the main problems hindering economic growth in Russia are "the incompleteness of the structural reforms in the industrial sector, as well as the relatively slow development of the financial sector." Additionally, according to Kasyanov, the capitalization of Russia's banking system is insufficient for meeting the needs of the economy. In this connection, a broader presence of banks with foreign capital is necessary on the Russian market. The Prime Minister pointed out that the Corporate Policy Code would be finalized and approved before the end of the year. The code will be recommended to Russia's business circles.