Zee Beam News

12–07–2005 RBC News – The net outflow of capital from Russia would be less than $5.4 billion this year, Alexei Kudrin, the Finance Minister of Russia, said at a meeting of the Federation Council on Tuesday. The Economy Ministry forecast a higher net capital outflow, at $8.5 billion, but Kudrin said it would be lower due to large borrowing by state companies. He also noted that the outflow of private capital from the country remained high. By December 15, the Finance Ministry would submit a draft federal budget for the next three years, for the first time, Kudrin said. "Three years' draft budget is a significant step forward improving the quality of economic regulation," he stressed. The Economy Ministry was reviewing its forecast for Russia's socio-economic development in connection with changes in oil prices, Kudrin said. The Economy Ministry had projected GDP to be RUR 21 trillion this year, RUR 24 trillion in 2006, RUR 27.84 trillion in 2007 and RUR 31.3 trillion in 2008. Real economic growth is expected to be 5.9 percent this year, 5.8 percent in 2006, 5.9 percent in 2007 and 6 percent in 2008. Inflation is set at 11.5 percent this year, 8.5 percent next year, between 6 and 7.5 percent in 2007 and between 4 and 4.5 percent in 2008. The ruble/dollar exchange rate is projected to be RUR 28.3 RUR/USD this year, 28.6 RUR/USD in 2006 and 2007, and 28.5 RUR/USD.