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    Russia’s GDP Growth Forecast to Remain at 1% in 2014 – Presidential Aide

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    Russia expects a roughly 1-percent growth in its gross domestic product this year, the Russian president’s economic aide, Andrei Belousov, said Wednesday.

    MOSCOW, July 23 (RIA Novosti) – Russia expects a roughly 1-percent growth in its gross domestic product this year, the Russian president’s economic aide, Andrei Belousov, said Wednesday.

    “My estimate [is] that it will remain at about 1 percent until the end of the year,” Belousov told reporters.

    The Russian Economic Development Ministry has introduced several updates to its estimates of the national economic growth over the past few months. In June it said the Russian economy was expected to reach 2-3.2 percent in 2015-2016 thanks to the output of its processing industry.

    This encouraging GDP estimate came after the Development Ministry seasonally adjusted the growth rate in the first quarter of 2014, cutting it by 0.5 percent against the same period last year.

    The revision followed the European Union’s and United States’ sanctions against Russia over its re-unification with Ukraine’s former republic Crimea in March.

    Last week, the US Treasury introduced a so-called Sectoral Sanctions Identification List that targeted several more Russian companies across defense, energy and banking sectors of the country’s economy.

    In Early July, the Russian Finance Ministry admitted that sweeping Western sanctions against entire sectors of its economy could slow the country’s GDP growth by 0.2-0.3 percent in 2014. It added Russia had sufficient reserves to compensate for most of the losses in the medium term.

    Moscow has repeatedly called economic sanctions counterproductive and warned of the boomerang effect they might produce on Western economies.

    Tags:
    GDP, economic growth, sanctions, European Union, Russian Ministry of Economic Development, Andrei Belousov
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