MOSCOW, December 20 (RIA Novosti) - Russia's gross domestic product could grow 7% in 2006, a deputy prime minister said Wednesday.
"On the whole, our economy's growth could reach 7% in 2006," Alexander Zhukov said.
Zhukov told the lower house of parliament that Russia's GDP was earlier projected to increase 6.3% in 2006. GDP growth in 2005 was 6.4%.
Addressing State Duma deputies at a "government hour," the deputy premier discussed IPOs of Russian companies, annual inflation compared to targets, capital inflow, and the country's bid to join the World Trade Organization.
Zhukov said the number of Russian companies that have held initial public offerings has tripled in the past 18 months, a process that the government welcomes. He added that 2006 has rightly been called the "year of the IPO" in Russia.
The year's inflation totaled 8.5% as of December 11, the deputy premier said.
"The government has managed to reduce the level of inflation, which hit 8.5% as of December 11, compared to 10.4% by the same date of last year," Zhukov said.
For the first time, inflation will be lower than 10%, and will total around 9% by the end of the year, Zhukov said.
In 2005, inflation in Russia stood at 10.9%, according to the economics ministry. A forecast for the country's social and economic development until 2009, prepared by the ministry, projects inflation at 6.5%-8% in 2007, 4.5-6% in 2008, and 4-5.5% in 2009.
Zhukov said net capital inflow in Russia was expected to exceed $30 billion, noting that Russia experienced continual capital flight in the 1990s, and a small inflow in 2005.
The government official said the country could join the World Trade Organization by mid-2007.
On the sidelines of last month's Asia-Pacific Economic Cooperation (APEC) summit, Russia signed a final protocol on its accession to the world's largest trade body with the United States, removing a major obstacle to its integration into the global economy.
"I hope this process will be completed by the middle of next year," Zhukov said.
