EcoMin: FDI in Russia to reach $65-73 bln by 2011

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Russia’s Economics Ministry predicted on Thursday that foreign direct investment in the country will reach $55-58 billion in 2008.

The figure will reach $56-62 billion in 2009, $60-67 billion in 2010 and $65-73 billion in 2011, according to the ministry. The ministry published forecast data on the country’s socio-economic development up to 2011 for a report by Minister Elvira Nabiullina, who addressed the first session of Russia’s new government under former president Vladimir Putin earlier in the day. Last year foreign direct investment in the Russian economy stood at $45.1 billion, the ministry said.

The Economics Ministry also forecast an increase in net capital inflow into the country from $52 billion in 2009 to $105 billion in 2011. The country’s trade balance is expected to reach $82 billion, with the average annual oil price standing at $78 per barrel in 2009. The trade balance could fall to $22 billion, the average annual Urals oil price could decrease to $74 per barrel, and net capital inflow increase to $70 billion in 2010, the ministry said. The forecasts for 2011 include a drop in the average annual oil price to $72 per barrel, and an increase in net capital inflow into the Russian private sector to $105 billion, with imports exceeding exports by $17 billion.

The Economics Ministry earlier predicted net capital inflow into Russia at $30 billion, the trade balance at $161 billion, and the average annual oil price at $92 per barrel in 2008. However, deputy economics minister Andrei Klepach said on Wednesday that net capital inflow could reach $50-60 billion on the back of soaring oil prices in 2008.

In 2007, net capital inflow was $82 billion and in 2006, $41 billion. The Central Bank’s 2008 forecast is $35 billion. (rian.ru)

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