PM Kasyanov forecasts better economic indicators

Russian Prime Minister Mikhail Kasyanov, speaking at a session of the Consultative Council on foreign investments, said that Russia's GDP for the eight months of 2003, according to preliminary estimates, amounted to 6.9% compared to the same period of last year.

"On the whole, for the year 2003 we expect GDP growth at 6%," said the Premier.

According to Kasyanov's data, the volume of industrial output growth for eight months increased by more than 6.6%. It is over 50% more than last year, he stated.

In spite of the money base growth in the country, inflation remains at a normal level and, hopefully, it will reduce to 12% for the year, as the government had forecast.

This year, the Prime Minister noted, the growth of actual incomes of the population continues.

The low rate of retail trade growth confirms that the population is more and more inclined to put by some of its incomes into savings. In the Premier's opinion, it indicates the return of the population's trust in the banking sector.

The Prime Minister also stated the growth of investment activity in the country, having mentioned that since the beginning of the year the growth of investment made up almost 12%. The Prime Minister added that the capital's outflow had been replaced by its pure inflow.

In Kasyanov's estimate, 2003 is likely to bring better, more positive dynamics that last year's indicators.