Source Pravda.Ru

IMF forecasts Russian GDP growth at 5.5 percent in 2005

The International Monetary Fund warned Friday that the Russian government's move to raise budget spending by more than 12 percent would spur inflation and hurt the nation's economic growth in the long term.

IMF mission head to Russia Poul Thomsen called an inefficient budget spending policy a greater threat to Russia than declining world oil prices, news agencies reported. Record prices for oil, Russia's key commodity, have largely been behind the nation's economic turnaround.

The Russian government approved a proposal Thursday to increase budget spending this year by 12.3 percent, or 382.7 billion rubles (US$13.5 billion,Ђ11 billion). In a controversial decision, the government directed that 111 billion rubles (US$3.9 billion, Ђ3.2 billion) of that come from an inflation-fighting fund designed to absorb sky-high oil revenues.

A budget target of 8.5 percent inflation was unlikely to be met and even a 10.5 percent to 11 percent range would pose a challenge, Thomsen said. He warned that "limited supply" coupled with more money in the economy will push up inflation further and could see growth continue to fall in the long term.

Thomsen predicted that the economy would grow by just 5.5 percent this year - a more pessimistic assessment than the government's downwardly revised 5.8 percent.

Associated Press

A year after the constitutional referendum of December 4th, 2016 that saw the victory of the NAY and the blatant defeat of the government front that had proposed the referendum, it can be said with certainty that the trauma for the defeated is now past. But there is still fear in them, not so hidden either...

Italy: Free fall

On December 10, 1948 the Universal Declaration of Human Rights was adopted by the United Nations General Assembly, its thirty articles enshrining basic and fundamental rights guaranteeing dignity of the human person and equality for all, regardless of race, color, creed or gender. A pipe dream?

Human Rights Day: Let us hang our heads in shame
Comments
Putin makes first comment on Trump's Jerusalem decision
USA looking for reason to see nuclear weapons in action
Why did Donald Trump recognise Jerusalem as the capital of Israel?
Putin makes first comment on Trump's Jerusalem decision
Russia works on MiG-41 doomsday fighter jet
Russia works on MiG-41 doomsday fighter jet
Russia works on MiG-41 doomsday fighter jet
Mikhail Saakashvili's bumpy ride in politics: From chewing his tie to climbing on rooftop
Mikhail Saakashvili's bumpy ride in politics: From chewing his tie to climbing on rooftop
European Court of Human Rights: Promoting filth and insolence
European Court of Human Rights: Promoting filth and insolence
Russian athletes announce their decision about 2018 Winter Olympic Games
Turkish President Erdogan issues ultimatum to Washington and Brussels
Gorbachev names reason behind crisis in US-Russian relations
Putin makes first comment on Trump's Jerusalem decision
Human Rights Day: Let us hang our heads in shame
Human Rights Day: Let us hang our heads in shame
Human Rights Day: Let us hang our heads in shame
Putin makes first comment on Trump's Jerusalem decision
Putin makes first comment on Trump's Jerusalem decision
Pentagon can not accept Russia's victory over terrorists in Syria