beyondbrics

More evidence of an economic slow down in Russia, coming only a few days before the presidential elections on March 4.

On Friday, economy minister Elvira Nabiullina was quoted by Interfax news agency saying that GDP growth in January was 3.9 per cent year-on-year,  down from 4 per cent in December and 4.3 per cent in the whole of 2011.  One holiday-oriented month is not on its own of critical significance – but the trend is clear.

Economists polled by Reuters forecast an average GDP increase in 2012 of 3.5 per cent, with the world economy struggling with the effects of increased oil prices and financial uncertainty, while domestic activity might slow later in the year, once election-linked expenditure is out of the way.

The finance ministry forecasts growth of 3.6-4 per cent, with inflation staying within last year’s figure of 6.1 per cent.

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