MOSCOW, September 26 (RIA Novosti) - Russia's gross domestic product grew by an annualized 6.4% in August, and by 7.7% in the first eight months of the year, the economics ministry said Wednesday
The country's GDP gained 7.9% in January-July.
Andrei Klepach, the head of the Ministry of Economic Development and Trade's macroeconomic forecast department, said the weaker growth figure was due to a slower rise in investments.
"The trend of slower increase in investments emerged in July. This will lead to an inevitable decline in investment," Klepach said.
He also said the ministry had raised its initial forecast for investment in fixed assets from 12.8% to 18.2%.
He added that inflation in September would be 0.4%, giving an inflation rate of 6.7% for the first eight months of the year. The government plans inflation to reach 8% for 2007, but Klepach said the figure could be higher.
Klepach said the ministry had raised its initial year forecast for manufacturing growth from 5.2% to 6% due to higher than expected growth in the manufacturing and construction sectors.
The initial annual forecast for GDP growth has also been raised to 7.3% from 6.5%, as well as the average price of oil from $55 /bbl to $65.5 /bbl.
Incorporating all the forecasts raised expectations for real wage and real income growth, with the figures rising to 15.6% and 12.5% for the year respectively.
