PRICE GROWTH IN RUSSIA SLOWS IN OCTOBER

Subscribe
US
India
Global
MOSCOW, October 12 (RIA Novosti)-A slowing trend in price growth was recorded in Russia in October, the director of the Economic Development and Trade Ministry's macroeconomic forecasting department, Andrei Klepach, said at the 10th conference of the Russian Grain Union.

"It is too early to name the precise figures," he said, "but according to the preliminary data, a slowing trend in price growth over the September figures was recorded."

In September, the inflation in Russia was 0.4%.

The growth in grain production in 2007 will reach approximately 3% a year.

"We forecast that in 2007 the grain production will annually grow by about 3%," he said, "and its share in the GDP will increase to 15%."

According to him, after 2007, substantial changes in agriculture and stable grain exports are expected.

"Presently, we can export 10 million metric tons of grain," he said. "However, this figure is the reverse side of the deterioration of the situation in livestock breeding today."

In his opinion, in order to ensure a stable growth in livestock breeding it is necessary to make substantial changes in the production of tractors, combine harvesters and other types of machinery.

"Apparently, it is not possible to expect high growth rates or a cardinal improvement in competitiveness of the industry in the next two or three years," he said. "Nevertheless, the export figures we have planned for the next three or four years are quite realistic."

In order to ensure a 5%-6% growth of the GDP, it is necessary to increase agricultural production by 3%-4%.

"Without breakthroughs in the formation of a new export infrastructure in the oil sector by substantially raising the competitiveness of the manufacturing industries, and agriculture," he said, "we will inevitably slide down in the growth rate from 7% to 6% in 2007 and then at best, we will remain at the 4% level.

"This is not a bad result compared to the global indices. Nevertheless, it is not sufficient for overcoming our existing discrepancy or for increasing the incomes and holding advantageous positions on the world market.

"In order to ensure a stable 6%-7% growth rate in the Russian economy, the agricultural industrial complex must grow, at a minimum of 3%-4 %, the food industry by about 6% annually and even more."

According to him, in order to achieve a stable production growth rate in the agricultural industrial complex it is necessary for capital intensity and capital investments in this sector to grow many times.

In 2004, capital investments in the agricultural industrial complex was about 4 billion.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала