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New 2014 year brings new economic risks

According to latest reports of Russia’s State Statistics Service in December 2013 annual growth of real salaries slowed down from 4.1% in November to 1.9% in December

MOSCOW, January 28. /ITAR-TASS World Service/. Hopes for invigoration of economic activity in Russia are not justified yet. The started 2014 year brings some risks related with ruble weakening and tougher competition of developing markets for foreign investment, Kommersant daily reported.

According to latest reports of Russia’s State Statistics Service in December 2013 annual growth of real salaries slowed down from 4.1% in November to 1.9% in December (5.2% in 2013 against 8.4% in 2012). Despite bonuses paid before the New Year holidays, growth rate of real incomes of people went down from 2.4% to 1.5% (from 4.6% to 3.3% upon last year’s results). Lower growth of private crediting and higher unemployment rate gave an additional impetus for slower retail turnover.

First opinion polls among industrialists by experts of the Yegor Gaidar Economic Politics Institute in 2014 showed that no more stimuli to make investment appeared in 2014, capital investment forecasts became worse.

“Private investment went up in 2013, state corporations are responsible for decline in overall amount of investment,” Minister of Economic Development Aleksey Ulyukayev believes.

Vedomosti business daily reported with the reference to Russia’s State Statistics Service reports that 2013 ended with a slump in construction (expect for housing construction), capital investment went down in 2013 year-on-year (by 0.3%) for the first time since 2009 (capital investment went up by 6.6% in 2012).

Retail growth rate slowed down 1.6 times (down to 3.9%) on 2012, paid services to people went down 1.8 times (down to 2.1%), reflecting slower growth of well-being.

“In current conditions, economic growth can be based only on investment growth,” minister Aleksey Ulyukayev believes.

“The last year was transitional from optimism to pessimism,” Nikolai Kondrashov from the development centre of the Higher School of Economics said in conclusion.

Sweeping economic and political reforms are needed to increase investment and subsequently medium-term potential of economic growth rate, Vedomosti daily added.

Itar-Tass is not responsible for the material quoted in these press reviews.

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Putin signs law on holding World Friendship Games

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North Korea conducts new anti-aircraft missile test — KCNA

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Russia won’t allow NATO to move closer in Ukraine — Lavrov

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FACTBOX: Collective Security Treaty Organization

The Collective Security Treaty came into force on April 20, 1994 to herald the emergence what would eventually become the Collective Security Treaty Organization. The six member-countries are Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan

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Press review: Biden backs aid to Israel, Ukraine and Russia assets giving West legal fits

Top stories from the Russian press on Friday, April 19th

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