RUSSIA CONSIDERABLY FEELS CONSEQUENCES OF WORLD FINANCIAL CRISIS

RUSSIA CONSIDERABLY FEELS CONSEQUENCES OF WORLD FINANCIAL CRISIS: FINANCE MINISTER


RUSSIA CONSIDERABLY FEELS CONSEQUENCES OF WORLD FINANCIAL CRISIS“Russia considerably felt consequences of the world financial crisis,” Aleksey Kudrin, the Russian Vice-Premier and Finance Minister, said in his. His speech at the Russian Parliament was aired lively via Vesti TV channel.

“In 2009 growth of the world economy will be the lowest over the past 20 years,” Kudrin said.

According to Kudrin, the International Monetary Fund (IMF) lowered forecasts on growth of the world economy to 2.2% in 2009, which testifies the lowest growth rate of economy in 2009. It is expected that growth of the world economy will make up 3.7% in 2008. Growth of the Gross Domestic Product (GDP) will drop by 0.25% in the developed countries, the IMF said. The Fund forecasts cut in the GDP by 0.7% in the United States and by 0.5% in economy of the Euro-zone countries in 2009. Growth rate was lowered in developing markets, including Russia.

It means that demand for the Russian export goods will considerably lower and such tendency will last in 2009, Kudrin said.

“We offered to confirm possibility of use of the Reserve Fund in 2009 in changes to the Budget Code should revenues from oil and gas and other income sources turn out lower than the budget target,” Kudrin said.

The Reserve Fund is insurance in crisis cases, the Minister said. “If such a change is adopted, the incomes and expenses on the law on budget will be fully fulfilled in 2009,” he said.

Kudrin divulged his forecasts on oil price, stating that it will be $50 per barrel in 2009, $55 – in 2010 and $60 in 2011.

Azerbaijan, Baku, 12 November / TrendCapital corr. A.Badalova