3 Feb 2010 12:32

Foreign direct investment to recover to $60 bln-$70 bln in 2-3 yrs

MOSCOW. Feb 3 (Interfax) - Foreign direct investment (FDI) in Russia will recover to $60 billion-$70 billion in the next two-three years, Deputy Prime Minister and Finance Minister Alexei Kudrin said at the Russia 2010 forum.

"I am confident that we will begin to recover the pre-crisis level, and in the next two-three years will restore foreign direct investment to $60 billion-$70 billion," Kudrin said.

The large flow of investment prior to the crisis was the product of stringent macroeconomic and budge policy and the elimination of restrictions on capital movements in 2006, he said.

Commenting on the outlook for global economic recovery, Kudrin said: "We don't have steady global growth yet, although the expectations are moderately optimistic." Kudrin recalled that on the eve of the World Economic Forum in Davos, the IMF raise its forecast for global economic growth to 3.5%-3.9% in 2010 and 4%-4.3% in 2011, including growth of 3.6% and 3.4% respectively in Russia.

"This year there are expectations for a turnaround from decline to growth. However, growth is expected to slow in many countries in 2011. It is too early to say that we are definitely on a steady upward trajectory. Many are saying that risks to the global economy remain," he said.

Russia's GDP decline in 2009 - negative 7.9% - was smaller than expected thanks to a strong fourth quarter. "In the next two months or so we will have more exact data," he said.