Russia may hike its economic growth forecast for 2007 from the current 6.5 percent to 7.2-7.4 percent, Russian Economy Minister German Gref said during a meeting with President Vladimir Putin.
Gref said that Economy Ministry experts did not foresee any major risks that could influence Russia's economy. He pointed out that the Russian stock market could be characterized as stable and the ruble as firming on the dollar. ( RBC )
Gref also pointed out that Russia's capital outflow had decreased somewhat. It was originally projected to be nearly $9bn, whereas the figure is more likely to be $7.6bn in 2007. Putin agreed fully with the Minister, saying that such a correction was logical, as Russia's capital inflow was very high, at $70bn.
According to the Economy Ministry's recent report, Russia's GDP grew 7.9 percent in the first seven months of 2007, which is greater than in the same period in 2006 (6.1 percent).
The ministry attributes this rapid growth of the country's economy to a faster rate of growth in investor interest, construction, and the processing industry, a high level of consumer demand, as well as a greater contribution of imports to meeting domestic demand amid a slower increase in exports.
The Economy Ministry is expected to present its revised forecast of Russia's social and economic development by September 20, 2007.