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Russia's GDP will grow 5.3%-5.7%, inflation will top 9.5% in 2005 - experts

January 11, 2005 | Interfax

Russia's economy will expand more slowly in 2005 than in 2004 at from 5.3% to 5.7%, experts surveyed by Interfax say. And inflation will top the Central Bank and government's 8.5% target and could be from 9.5% to 12%.

Senior Economic Expert Group member Yevsei Gurvich predicts Russia's GDP will grow 6.5% in 2005, industrial output 6.1% and fixed capital investments 11%. Inflation will be 11.7% for the year, he said.

Troika Dialog economist Anton Struchenevsky figures GDP will increase 6.4% and industry 6.0% in 2004, while inflation will be 11.8%.

"The end of the year - rather negative and no special increase," he said. "A certain amount of economic optimism is associated with policy implemented by the government, the mid-term program is fully seasoned with a liberal tone," he added.

Struchenevsky estimates GDP will grow 5.3% in 2005, industrial output will increase 4.5% and investment in fixed capital 7.6%. He predicts 2005 inflation of 9.5%.

"The main driving force behind inflation is that the population has sharply reduced the savings norm," he said


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