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Kremlin economic aide warns crisis could deepen

© Iliya Pitalev / Go to the mediabank"We understand that the risks are still high, and as yet the growth trend is not stable. It is too early to sit back"
We understand that the risks are still high, and as yet the growth trend is not stable. It is too early to sit back - Sputnik International
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A Kremlin economic adviser warned on Thursday that the financial crisis in Russia and abroad may deteriorate further, despite recent signs of a recovery.

MOSCOW, September 17 (RIA Novosti) - A Kremlin economic adviser warned on Thursday that the financial crisis in Russia and abroad may deteriorate further, despite recent signs of a recovery.

The country's GDP rose slightly in August for the first time since the onset of the recession last year.

"We understand that the risks are still high, and as yet the growth trend is not stable. It is too early to sit back. Uncertainty and risks are very high, both for this year and next year, so there are no grounds to say that we are experiencing stable growth," Arkady Dvorkovich told a RIA Novosti news conference.

"This applies to any other country," he added.

He said that so far growth has been ensured by injections of government funds, and that neither the global nor the Russian economic models have changed.

He said statements by government officials, including First Deputy Prime Minister Igor Shuvalov, who reported on the government's anti-crisis measures to the State Duma on Wednesday, reflected signs of stabilization that have been seen on the financial markets, and in industrial growth and GDP since June.

"Some sectors have shown a revival, and we are seeing positive industrial growth... Taking into account all anti-crisis measures, we think the prospects for the rest of 2009 are quite favorable, quite positive," Shuvalov said.

 

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