Russian economic momentum picks up

27th July 2010, Comments 0 comments

Russian economic momentum picked up in the second quarter of 2010 when gross domestic product (GDP) grew 5.4 percent from the equivalent output level last year, a deputy minister said on Tuesday.

"In the second quarter, GDP rose 5.4 percent year-on-year," said Deputy Minister of Economic Development Andrei Klepach, according to Russian news agencies.

In the first quarter, GDP rose 2.9 percent from the same period the year earlier. "We are talking about an acceleration of growth," Klepach added.

Russia's hydrocarbon-dependent economy was hard hit by the economic crisis, suffering a 7.9 percent economic contraction in 2009 after growth of 5.6 percent in 2008.

Klepach said that in the light of the strong performance in the second quarter, the government would raise its annual forecasts for GDP and industrial production growth.

The government has been forecasting growth of 4.0 percent for all of 2010.

© 2010 AFP

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