Russian GDP to increase by 3% in 2011, ruble to decrease to 33 rubles/$1

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Russian GDP to increase by 3% in 2011, ruble to decrease to 33 rubles/$1 - Alfa-Bank forecast

MOSCOW. Dec 13 (Interfax) - Russia's gross domestic product (GDP) will only go up by 3% in 2011 since imports will increase by 15% in comparison with 2010, which, in turn, will neutralize the positive outcome of rising demand. This forecast was included in a note produced by Alfa-Bank's chief economist Natalya Orlova and analyst Dmitry Dolgin.

The forecast also said that pressure on the current payments balance will push the ruble's value down to 33 rubles/$1. In addition, the refinancing rate will likely increase to 8.25% by year's end with the inflation rate of 8%, the experts forecast.