Russia should save for rainy day: IMF official
September 28th, 2011 - 11:02 am ICT by IANSMoscow, Sep 28 (IANS/RIA Novosti) Russia should “start saving for a rainy day”, IMF mission chief for Russia Juha Kahkonen said in an interview.
Russia’s non-oil budget deficit currently stands at some 6 percent of GDP, above the level which the Russian government and the IMF see as sustainable.
“And so it’s a need for Russia to start saving for a rainy day,” Kahkonen said.
The interview was posted on the IMF’s website.
The IMF official cited forecasts from the organisation’s experts, who expect the economic growth to stand at 4.3 percent this year and 4.1 percent in 2012, with inflation being above 7 percent in both years. However, if economic policies are not strengthened, Russia’s growth may drop to below 4 percent in the midterm.
“These are not the impressive numbers for Russia, because Russia used to have average growth of 7 percent before the global crisis, and it’s also benefiting from high oil prices,” the IMF mission chief said.
The official said Russian economy faces two main risks, both external - the Euro area crisis and the global economic slowdown.
–IANS/RIA Novosti
sd/rd
- Trade between Russia, China to reach $70 bn: Putin - Sep 15, 2011
- Medvedev, IMF chief to discuss world financial system - Nov 07, 2011
- Developed nations' problems now affect developing economies: IMF - Oct 16, 2011
- Russia may increase oil output in 2012 - Jan 22, 2012
- Russia now world's sixth largest economy: Medvedev - Dec 22, 2011
- IMF warns Russia over credit bubble - Apr 20, 2012
- Belarus has the right to IMF loan: PM - Jun 14, 2011
- Russian economy more solid than Europe's : Medvedev - Nov 20, 2011
- Medvedev opposes Libya-style UN resolution on Syria - Jun 20, 2011
- Russian budget deficit expected at 1 percent of GDP - Feb 02, 2012
- Russia's central bank keeps refinancing rate flat - May 30, 2011
- Moody's may downgrade Russian bank ratings - Oct 11, 2011
- Greece to receive new IMF aid in July: French PM - Jun 22, 2011
- G8 wants Greece to remain in Eurozone (Lead) - May 20, 2012
- Russian protests may turn into civil war: Billionaire - Jan 31, 2012
Tags: budget deficit, economic growth, economic policies, gdp, global crisis, global economic slowdown, imf mission, imf official, impressive numbers, inflation, juha, mission chief, moscow, oil prices, rainy day, ria novosti russia, russian economy, russian government