19 Nov 2009 10:01

Kudrin not expecting second wave of crisis, expecting volatility in coming months

MOSCOW. Nov 19 (Interfax) - Russian Finance Minister Alexei Kudrin said he was not expecting a second wave of crisis but that the Russian economy might be volatile in the coming months.

"On the whole we don't think there'll be a second dip [in GDP] but month-to-month indicators will be unstable, as growth alternates with decline - in other words there'll be a lot of volatility," Kudrin told reporters on Wednesday evening.

GDP is expected to grow next year, he said.

The latest data from the Federal State Statistics Service (Rosstat) on industrial decline confirm Kudrin's position on high volatility in the coming months. "This [volatility] is due to the fact that wee have not essentially resolved the key, fundamental crisis problems," he said.

Rosstat has said industry plummeted 13.3% year-on-year in January-October and 11.2% year-on-year in October.

Even so, Russia has started to emerge from crisis, but key issues remain unresolved, Kudrin said.

"Private sector demand on the global markets has not started to work, protectionist barriers remain in place, real estate prices continue to fall and there are big risks in all sectors," he said.