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Minister: Russia’s GDP can grow by 2,5 percent in 2014

Alexei Ulyukayev said inflation in Russia in 2013 would be 6.4-6.5 percent

LONDON, December 11, 22:53 /ITAR-TASS/. Russia’s GDP can grow by 2.5 percent in 2014, Minister of Economic Development Alexei Ulyukayev said at a press conference in London.

“We tend to update our forecast (for GDP). Our projection for next year is 3 percent, but we have sent a corrected version to the Finance Ministry and expect GDP to grow by 2.5 percent in 2014. This is not a critical difference, within the margin of error. I see no problem there. Such differences occur in institutes’ projections all the time,” Ulyukayev said.

He said inflation in Russia in 2013 would be 6.4-6.5 percent, which is above the projected level of 6 percent.

The problem is that “food makes up a very large portion of our consumer basket, and this affects the final figure,” he said, adding that the other components, such as services and non-food products, are less subject to sharp fluctuations.

“The Central Bank’s goal of 5 percent (next year) appears to be realistic. We can say with a high degree of probability that the target figure of 5 percent can be achieved,” the minister said.

With the current level of inflation, he believes it unlikely that the Central Bank will lower its interest rate.

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