UPDATE: Min says believes exports to drive Russian 2015 econ rise

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MOSCOW, Mar 19 (PRIME) -- Russian exports may give an impulse for growth to the entire economy in 2015 although the ruble is rebounding, Finance Minister Anton Siluanov said at a conference Thursday.

“We are seeing that the export-related sectors of the economy and the sectors competing with imports, such as industry, agriculture, the market for tourism and services, which were subdued by a strong ruble and significant costs, such as tariffs, some time ago, now have advantages under the new exchange rate conditions and are actively developing,” Siluanov said.

The ruble has passed through a turmoil in late 2014–early 2015 and is becoming “a strong currency,” Siluanov said. “The end of last year and the beginning of this year were particularly hard… Now we in general believe that we have overcome the troubles’ peak and we are seeing certain moments of stabilization. For instance, the ruble has been strengthening since the year started and has become one of strong currencies.”

Economic Development Minister Alexei Ulyukayev said that the economy will return to a 2.0-2.5% growth in 2016 after a 3% fall this year and will grow 2.5% in the next three years.

Costs incurred by the ruble weakening will shrink by 1.5 trillion rubles in 2015, Ulyukayev said.

Lower investment and consumer demand will be the main factors of economic downturn in 2015, Ulyukayev said.

All conditions are met for inflation to stabilize at 11-12% in 2015, falling from the current peak of about 17%. In 2016, the consumer price growth will slow down to 6-7%, Siluanov said.

Monthly inflation in March will be below the level of March 2014, when it was 1%, Siluanov said. In the period from March 11 to March 15, consumer prices rose 0.5%, he said.   

The crisis will end for Russia when investments rebound, Siluanov said.

Ulyukayev said that this year the net capital outflow will be below U.S. $100 billion.

(61.3483 rubles – U.S. $1)

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