The Russian economy out of recession and began to recover, Prime Minister of Russia Vladimir Putin during an extensive report today on the work of the government last year exported to the State Duma, Russian media reported. According to Putin recession ended the Russian economy and now also the conditions for progress are very good. According to the Russian prime minister that does not mean that the country has gone out of crisis but the recession has ended. Putin reasons that make those findings justify its latest data on the development of Russian economy. He stated that preliminary results for first quarter suggest optimism – the growth of industrial production reached 5.8 percent, while real incomes have risen by 7.4 percent. Russian Prime Minister added that it is very likely the official forecast of growth of gross domestic product for 2010 from 3.1% to be exceeded and it reaches about 4%. Putin noted that the key sectors of the real economy and financial system out of the global test and enter into good shape. Putin stressed in his speech that it is necessary to keep the trend from last year to decrease inflation, when it slowed to 8.8 percent (the lowest level of 18 years) for this year is on average 5-6 %.
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The Russian economy grew in the first quarter of this year for the first time since 2008 thanks to the recovery of this industry and services, and improving labor market. On an annual basis for the first quarter GDP grew by 0.5 per cent since the fourth quarter of last year declined by 2.6 percent, data show the indicator for the economy of VTB Capital – the investment bank unit VTB. Only in March the Russian economy grew by 1.1 per cent growth from 0.5 percent in February, the index shows. Increased demand for raw materials and larger consumer spending helped the country to escape from its worst recession since the collapse of the Soviet Union. According to official statistics in the fourth quarter the economy shrank by 3.8 percent annually after a decline of 7.7 per cent in the third. For the year reported a decrease in GDP by 7.9 per cent. According to data from the state rail operator transporting goods by rail, which is considered indicative of changes in industrial production jumped by 12.7 per cent yoy in the first quarter. In February retail sales increased by 1.3 per cent annually, while unemployment fell to 8.6 per cent from 9.2 per cent. Capital investment and unemployment are “weak links” in the restoration, said last month, Deputy Economy Minister Andrei eyelid. VTB Capital indicator calculated on the basis of surveys of business conditions in manufacturing and services sectors.
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