Russia trims 2011 growth forecast to 4.1pc

MOSCOW: Russia's Economy Ministry has trimmed its growth forecast for 2011 to 4.1 percent from 4.2 percent against a backdrop of budgetary spending cuts and growing imports, a deputy minister told reporters on Saturday.

Andrei Klepach didn't rule out a possibility of a further growth slowdown due to weak data in January-June.

"The first half was quite weak. If to extrapolate it for the whole year, we may see 3.8-3.9 percent (growth)," he said.

He also said the ministry had cut industry production growth projection for this year to 4.8 percent from previously seen 5.4 percent, while the rouble is expected to weaken further to 32.2 rouble per $1 in 2012-2014 from some 28.7 now.

The Economy Ministry expects capital outflows to reach between $30 billion and $40 billion this year, with the possibility of no flight in 2012, according to Klepach.

Copyright Reuters, 2011