Russian Prime Minister Mikhail Kasyanov Unsatisfied with Level of Investment into Russian Economy

One of the main themes of today's government meeting was, according to Prime Minister Kasyanov, the results of Russia's social and economic development in the first half of 2002, and the tasks for the near future. As announced by the Department of Government Information, he remarked that not all results concerning the development of the Russian economy are positive. In particular, inflation is not yet fully under the control of the Central Bank and the Ministry of Finance. The Russian prime minister also considers the rate of increase of investment into the Russian economy to be insufficient. This figure over the first half of this year did not attain predicted levels, reaching a mere 1.8%. 'This is a very slow rate, insufficient for our economic growth', said Kasyanov.

He also expressed his dissatisfaction that over the first half of this year, export of Russian products decreased by 7%, while import rose. According to Kasyanov, this means that the 'internal demand, which is one of the most important factors for economic growth, is satisfied to a large extent by imported goods.'

Kasyanov also noted that over the first half of 2002, received tax and duty totalled at USD 413 million more than was expected. The growth of industrial production comprised 3.2%, and real profits received by the population rose 'at a faster rate than in previous periods.' The prime minister also remarked that the total growth of the GDP in the first half of 2002 was 3.8%, which is more than was predicted.