-

Economic Growth: Forecasts Revised Downwards

Alexey L. Vedev – Head of the Center of Structural Research of the Russian Presidential Academy of National Economy and Public Administration; Leading Researcher of the Gaidar Institute, Doctor of Economic Sciences (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The mid-term forecast of the RF Ministry of Economic Development has been revised downwards as compared with the April version. However, the growth rates of real GDP are left unchanged for this year (1.3%) and reduced from 2% to 1.7% for the next year. In terms of the budget process, the nominal values of GDP have declined which factor means a decrease in revenues is expected. Accordingly, expenditures are expected to be cut, so, this situation will result in the shrinkage of domestic demand.

Key words: economy, economic growth, economic development forecast.