Russian Economy Grew Annual 7.6% in the Third Quarter
By Maria Levitov
Dec. 7 (Bloomberg) -- Russia's economy expanded more than economists forecast in the third quarter, suggesting it is weathering higher credit costs caused by the U.S. housing slump.
The economy grew 7.6 percent from a year earlier after expanding 7.8 percent in the second quarter, the Moscow-based Federal Statistics Service said on its Web site today. Economists expected growth of 7 percent, according to the median of 14 forecasts in a Bloomberg News survey.
``The effect of the global credit crunch was less significant than some feared,'' said Yaroslav Lissovolik, chief economist at Deutsche Bank AG in Moscow. Capital investment and consumer spending were ``strong and remained the main drivers of growth'' and fourth-quarter data are also likely to be ``robust.''
Russia, the world's biggest energy exporter, is enjoying its ninth consecutive year of economic expansion, boosted by rising incomes and spending. Wages expanded at an annual rate of more than 10 percent every month since February 2006, reaching a monthly average of 13,540 rubles ($552.97) in October.
The retail industry attracted $37.2 billion in foreign investment in the first nine months of this year, according to the Statistics Service. Starbucks Corp., the world's largest coffee- shop chain, opened its first cafe in Russia in September. The cafe opened in a Moscow mall that houses retailers including France's Auchan SA and Stockmann Oyj of Finland.
2007 Forecasts
Moscow-based Alfa Bank may raise its forecast for 2007 economic growth to 7.6 percent from 7.4 percent, said Natalya Orlova, the bank's chief economist. Deutsche Bank's Lissovolik also forecasts growth of 7.6 percent.
The Russian economy will expand at least 7.3 percent this year after 6.7 percent growth in 2006, according to Economy Ministry forecasts.
Still, the fallout from the U.S. subprime mortgage market collapse has rippled through world financial markets, raising borrowing costs and fueling concern of a slowdown in Russia.
Net capital inflow declined to $56.8 billion in the third quarter from a record $66.2 billion in the second, according to the central bank.
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