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#7 - JRL 2008-181 - JRL Home
Russia could have zero capital inflow in 2008 - Econ Ministry

MINSK. Oct 6 (Interfax) - Russia could have zero capital inflow in 2008, Deputy Economic Development Minister Andrei Klepach told reporters in Minsk.

"We could have zero, we could have a small surplus," Klepach said.

"The $30 billion [that the Economy Ministry most recently forecast] will be inaccurate. The situation is changing radically," he said.

The Central Bank's most recent capital inflow forecast was $40 billion, but the CB has said this could be reviewed.

Klepach said the situation with capital inflow could pick up a little in November-December. "We didn't expect a sharp increase in capital inflow in December last year, either," he said.

Asked whether the ministry planned to adjust the socioeconomic forecast that it had recently submitted to the government, Klepach said: "We've submitted the forecast and we don't think anything needs reviewing right now. I'm hoping we won't have to review anything at all."

However inflation in 2008 "is already running a little above our forecasts," Klepach said. "We've said it will be approximately 12%, but it's hard right now to say just how approximately," he said.