Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

57 000 little problems

Read more

IN THE PAPERS

The Sarkozy 'threat'

Read more

BUSINESS DAILY

Budget challenge for India's new government

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

INSIDE THE AMERICAS

World Cup humiliation for host nation

Read more

DEBATE

Israel and the Palestinians: How to Break the Cycle of Violence?

Read more

AFRICA NEWS

Somalia : Al Shebab attack on presidential palace

Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Alps Murder wife had ex-husband who died on same day

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Brazil players should never wear 'sacred uniform' again, press says

    Read more

  • Exiled Syrian opposition elects new president

    Read more

  • Ukraine imposes new conditions on peace talks with pro-Russia rebels

    Read more

  • Sarkozy's UMP party 'almost €80 million in debt'

    Read more

Business

Medvedev forecasts slightly less severe GDP shrinkage

©

Text by News Wires

Latest update : 2009-10-12

Russian President Dmitry Medvedev says the country's economy will shrink by 7.5% this year, a slight improvement on earlier forecasts.

AFP - Russia's gross domestic product (GDP) will shrink 7.5 percent in 2009, President Dmitry Medvedev said in an interview released Sunday, after earlier government predictions of an eight percent drop.
  
"This year, we expect to see the GDP decline by about 7.5 percent," Medvedev said in an interview with Russia's Channel One state television, according to a transcript released by the Kremlin.
  
Last month, Russian Prime Minister Vladimir Putin put the expected decline in GDP at eight percent or slightly less, following earlier official forecasts that it would shrink 8.5 percent.
  
The Russian economy, which is largely based on the export of oil, gas and other commodities, was badly hit by the global financial crisis after years of enjoying strong growth.
  
Medvedev said the anticipated 7.5 percent decline was "very serious" and admitted that the government had been surprised at how severely Russia had been hit by the crisis.
  
"The real damage to our economy was far greater than anything predicted by ourselves, the World Bank and other expert organisations," Medvedev told Channel One.
  
But the government pulled together and avoided the economic disaster that some had feared by implementing an anti-crisis programme that saved jobs and stabilised Russia's banking sector, he said.
  
"We were ultimately able to make fairly good use of anti-crisis measures to avoid the worst possible scenarios in terms of unemployment and direct financial consequences from the crisis, as well as effects on the work of the banking system," Medvedev said.
  
"Our banking system withstood the stress, and now it is doing just fine," he added.
  
Medvedev also assured television viewers that Russia's currency, the ruble, was "entirely calm and stable" after it initially declined against the dollar in the first months of the crisis amid plunging oil prices.
  
"It seems to me that overall, our reasonably optimistic expectations are now justified. At the same time, there are grounds to believe that next year we will have a whole new set of problems to address," the president said.
  
During the first eight months of the year, Russian GDP declined 10.2 percent compared to the same period of 2008, according to the country's economy ministry.
  
Officials have said however that Russia came out of recession during the third quarter of 2008 and that the economy is gradually recovering.

Date created : 2009-10-11

Comments

COMMENT(S)