The Russia Journal

Ukraine outpaces Russia in economic growth

August 06, 2004 Posted: 15:10 Moscow time (11:10 GMT)

Ukraine and Tajikistan have outpaced Russia in economic growth. The Russian
Federation ranks 7th among the CIS members in GDP growth rate shown in the
first half of this year, according to the data released today by the
Interstate Statistics Committee of the CIS. The Russian economy expanded at
a 7.9-percent annual rate over the first six months of 2004.

Ukraine showed the largest growth of 12.7 percent. Tajikistan ranked second
benefiting 11.1-percent growth. Azerbaijan followed Tajikistan with
10.6-percent growth. Belarus, Georgia and Kyrgyzstan outpaced Russia as
well, benefiting from a 10.3-percent, a 9.4-percent and a 9.2-percent
expansion respectively. Data on Moldovan and Kazakhstani GDP growth has not
been released as yet.

The economic growth among the CIS members averaged 9 percent in the first
half of this year. At the same time the inflation rate averaged 10 percent
in the CIS in the first half of 2004. Belarus showed the highest inflation
rate of 20.8 percent. Kyrgyzstani 4.1-percent inflation was the most
moderate among other CIS members. Russia ranked third in the increase in the
Consumer Price Index (CPI) in the first six months of 2004. Consumer prices
in Russia advanced 10.4 percent. Moldova showed the second highest inflation
rate of 13.6 percent. CPI index jumped 7.5 percent in Armenia. Ukraine
showed a 7.4-percent increase in the CPI. Kazakhstani consumer prices
advanced 6.6 percent over the first half of 2004. Azerbaijani consumer
prices increased 6 percent. Georgia showed a 5.5-percent increase in the
CPI. Tajikistan showed a 5.2-percent increase.

As Russian Economy Minister German Gref announced yesterday, one should not
rule out the possibility of Russian economy showing 6.8-7.1 percent
expansion if oil prices average over $30.4 a barrel this year. According to
Gref, the average monthly rate of economic growth is forecasted to decrease
by 0.2 percent in the second half of this year. Thus, it is expected to fall
to 0.5 percent from 0.7 percent in the first half of this year. However, the
Russian Economy Minister considers this rate to be high. Experts with the
Russian Economy Ministry forecast a 6.7-percent economic expansion for this
year. The Russian Economy Ministry has revised upward its estimates of the
Russian economic growth for 2005, Gref said. It forecasts a 6-percent
expansion compared to earlier estimates of a 5.9-percent economic growth.

From: Emil Lazarian | Ararat NewsPress