Economic Development Minister: Judging by 2002, inflation in Russia will not exceed 14% - 23 September, 2002

The analysis of the Russian economic situation shows that till the end of 2002 Russia will be able to maintain the 14% inflation level forecast by the government.

The Russian Minister for Economic Development and Trade German Gref made this statement on Monday when speaking at the investors' conference annually held in Moscow.

In the last eight months, the inflation rate equalled 9.9 per cent and "we believe till the end of the year it will not exceed 14 per cent", the Minister stressed. He believes the inflation slow-down was first of all due to "Russia's reasonable budget and credit policy".

Gref also stated that in the last eight months Russia's GDP had totaled four per cent. He believes this increase is due to industry, agriculture and retail trade.

Meanwhile, the industrial growth currently equals 3.8 per cent and trade growth 8.8 per cent, with the population's incomes growing by 7.7 per cent. Gref also pointed to the fact that the growth of investments in the fixed capital had exceeded 4.5 per cent during the same period.

Accordingly, in the last eight years of 2002 the Russian economy overcame the negative trends predicted in late 2001-early 2002, the Minister for Economic Development and Trade pointed out. Gref believes "this really proves that Russia's economic growth is stable".