Russia's GDP down 10.1% in 1H09 - minister

Russia's GDP fell an estimated 10.1% in January-June 2009, Economic Development Minister Elvira Nabiullina said on Wednesday according to RIA Novosti.

At the same time, industrial output, net of seasonal and calendar factors, increased 0.8% in the reporting period, the minister said.

Nabiullina said the Russian economy had sufficient potential to overcome the negative effects of the crisis, and would be helped by the gradual easing of the global economic crisis and the implementation of the government's anti-crisis measures.

Nevertheless, the economy is expected to shrink 8-8.5% in 2009, according to the ministry's estimate.

Nabiullina said that Russia's economic growth would resume in subsequent years, if measures are implemented to cut the economy's energy intensity, raise labor productivity and improve the competitiveness of Russian goods.

"We need to stimulate domestic demand," Nabiullina said, adding that an additional 700 billion rubles ($21.9 billion) would be allocated for this purpose in 2010.

 

 

Source: Port News