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Recession in 2014 may be avoided -- Russian Econ ministry

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02.12.2014

MOSCOW, 2 December 2014 (PRIME) -- Russia’s Economic Development Ministry has cut its 2015 gross domestic product (GDP) forecast to a fall of 0.8% from a 1.2% growth, and increased its 2014 forecast to 0.6% from 0.5%, Deputy Minister Alexei Vedev told reporters Tuesday.

“In the end our forecast for GDP growth in 2014 is revised to 0.6% from 0.5%, and the GDP estimate for 2015 is revised significantly – the current forecast envisages a 0.8% decrease,” Vedev said, adding that this estimation is connected with the continuing sanctions and investors’ uncertainty.

The ministry does not rule out the Russian economy entering a recession already in January–March 2015, while in April–June a rebound is possible. “In the first quarter we expect a decrease due to falling demand in the first place,” Vedev said, adding that in October–December 2014 the GDP excluding the seasonality may remain in the positive zone, and the recession in 2014 may be avoided.

PRIME

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