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RIA Novosti

Russia

Net capital inflow exceeds $3 bln in Russia in November

12:58 10/12/2007
MOSCOW, December 10 (RIA Novosti) - Net capital inflow in Russia exceeded $3 billion in November 2007, Deputy Prime Minister and Finance Minister Alexei Kudrin told the press on Monday.

"Net capital inflow made slightly over $3 billion in November," he said at a forum on global investment and finance predicting that the 2007 index would be $75-80 billion.

Kudrin said net capital outflow was reported in August and September, with net inflow hitting $11 billion in October.

The minister drew a parallel between the recent parliamentary polls where Russians voted for stability and continuity of Russian economic policies and foreign investors voting for stability and confidence in the Russian economic growth with their capital.

Speaking about the country's growth prospects, Kudrin said Russia would continue to evolve faster than the average global levels.

Kudrin said Russia's foreign debt totaled $47 billion, or 3.7% of the expected GDP rate as of October 1, 2007, with total debt accounting for 7.5% of GDP.

The official also said that foreign direct investment (FDI) in Russia would increase to $45 billion against last year's $26 billion.

He added that the Russian government did not plan to review its forecast of 5%-6% inflation in 2010.

"We will not change our forecast of 5%-6% for 2010. But we have lost 2007," Kudrin said.

Deputy Economic Development and Trade Minister Andrei Belousov said last week that inflation in Russia could exceed 11.5% but will stay under 12% in 2007. The government's target for 2007 was 8%.

Kudrin described record capital inflow following last year's liberalization of currency policies as a major factor pushing inflation up.

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