Economic development outstrips forecasts

President Putin says the GDP will grow against the background of global oil prices
President Putin announced today, the speed of the economic development in Russia complies with forecasts, or even outstrips them.  “Our economic development forecast has been true and correct for the time being; certain economic development figures were registered as exceeding,” the president stated at a session with the government.

Vice Prime Minister Alexander Zhukov said the GDP growth would make up 6.3 percent in 2005. According to preliminary forecasts the GDP growth in 2005 was planned on the level of 5.9 percent. The GDP growth during the second six months of the current year will reach 6.9 percent, which would be 0.2 percent as high as was forecast before, the minister said. “During the first six months we expected the economic growth of 6.7 percent. Taking into account present favorable tendencies for the development of economy, the global oil prices conjuncture, the GDP growth will reach 6.9 – 7 percent,” the vice prime minister was quoted as saying.

Alexander Zhukov emphasized the government had specified the economic development forecast in 2004 and 2005. “The Ministry for Economic Development and Trade raised the GDP forecast for 2005. The speed of the economic development was forecast on the level of 5.9 percent. The budget will be based on the 6.3 percent growth,” the minister said.

Zhukov stated the new forecast of the economic development took account of “the price forecast on basic export goods, energy carriers and changes in the structure of our economy.”  The growth of machine-building, metal-working in the first half of 2004 made up 15 percent. The vice prime minister added the above-mentioned industrial branches were the fastest in their development, Itar-Tass reported.