Latest Russian Economic Growth Forecast

I reported earlier that the Russian economy is growing better than many others across the globe. What's the latest economic outlook have to say?

Russian GDP growth will stay relatively high at perhaps 4.6% in February, however industrial growth may not be as high, at possibly 4%-4.2%. Growth in domestic and foreign trade will be the main driving forces behind economic growth, the Interfax Center for Economic Analysis thinks. Russian industry, though, will be constrained by a drop in internal demand and a growth in production costs, fueled by more expensive component imports, mostly from Europe, and higher transport expenditures.

The outlook for business investment is beginning to improve, according to the latest economic report. "Capital investments, which have fallen consistently in the past year, are set to resume growth in February. The major investment that British Petroleum recently announced in Russia will persuade other potential investors in the Russian oil industry to step up the search for Russian partners. Although the recovery in investments is only just beginning, investment growth this month could still be 3.9%-4.1% higher than in the same month of 2002."

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