Recession over in Russia

Russian Finance Minister Alexei Kudrin signaled on Wednesday an end to recession, announcing that the country`s economy was expected to grow more than 2% in October-December 2009.

"In the fourth quarter, we expect growth, and even the [GDP] growth rates will slightly increase and equal more than 2%. This means that we have exited the recession and a reversal from decline to growth has begun to be seen," Kudrin told the lower house of Russia`s parliament.

Under the 2010 budget and basic budget parameters for 2011-2012, Russia`s GDP is expected to grow 1.6% in 2010, 3.0% in 2011 and 4.3% in 2012.

Kudrin said that as of November 1, 2009 the government had spent 900 billion rubles ($30 billion) on anti-crisis measures out of 1.393 trillion rubles ($46 billion) earmarked for the purpose in the budget.

Meanwhile, Russia`s Economic Development Ministry said on Wednesday it had improved its economic forecast for 2009, with the country`s GDP expected to decline 8.5% compared with the previous figure of 8.5-8.7%, investment to fall 17.6% against the previous figure of 20% and retail trade to shrink 5.7% compared with 6%.

Andrei Klepach, deputy economic development minister, said the ministry had kept its 2009 forecast on industrial output decline at 11.5% but said this decline could be smaller at 11%.

The ministry also lowered its inflation forecast for 2010 from 9-10% to 6.5-7.5%. This year, Russia`s consumer prices are expected to grow 8.8-9%.

sections: Society, Economics