Good News For Russian Economy - 6.7 Percent Growth for 2006
The oil-driven Russian economy has grown 6.7 percent this past year according to preliminary estimates posted by the state statistics agency.
The estimates are higher than the 6.4 percent gross domestic growth realized in 2005, but less than the 6.9 percent GDP forecasts by the Economic Ministry. Previously in 2004 there was 7.2 percent growth of GDP and a 7.3 percent GDP growth in 2003.
The sectors that posted double-digit growth in 2006 are construction, hospitality and financial areas. Trade, communications and transport were also strong economic performers. Industrial growth, at 1.9 percent in GDP was one of the poorer performing aspects of the Russian economy for 2006.
The challenge for the Russia will be one of creating development in the high-tech sectors in order to compete overseas in terms of manufacturing and selling products. President Putin wants to move the economy away from its heavy reliance on gas, oil and natural resources towards a more diversified business environment.
In other business news, the First Deputy Prime Minister Dmitry Medvedev has announced that the State share in major industries, such as transportation, gas and oil is not excessive and that the country’s private sector is not ready to take control of those industries.
