Russia may be hit by recession, says minister

Moscow, April 13 (IANS/RIA Novosti) The Russian economy could slip into recession this coming fall unless measures to stimulate growth are urgently implemented, Economy Minister Andrei Belousov said.

“We will propose economic stimulation measures,” he said, warning that otherwise Russia will see zero growth by the fall.

“These measures are necessary because we have to get out of the situation we are now in, so as not to fall into recession,” Belousov said.

He added that a meeting on the issue with President Vladimir Putin is due to take place in the near future.

The ministry lowered its 2013 forecast for the country’s GDP growth to 2.4 percent from 3.6 percent amid stagnating exports and faltering investment, Deputy Economy Minister Andrei Klepach said.

The ministry also expects net capital outflow to reach $30-35 billion in 2013 compared with its original forecast of 0-$10 billion, Klepach said.

Russia’s GDP grew only by 3.4 percent last year, the lowest since the deep recession of 2009, with weak demand for Russian exports in Europe.

–IANS/RIA Novosti

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