Foreign investment in Russia plunges 50% in 2010

Updated: 2011-02-18 17:33


Twitter Facebook Myspace Yahoo! Linkedin Mixx

MOSCOW - Foreign direct investment (FDI) in Russia slid significantly last year, Russian Finance Minister Alexei Kudrin said Friday.

Related readings:
Foreign investment in Russia plunges 50% in 2010 FDI growth to remain robust over coming year
Foreign investment in Russia plunges 50% in 2010 Rising labor cost may affect flow of FDI, says Nomura
Foreign investment in Russia plunges 50% in 2010 FDI door still wide open
Foreign investment in Russia plunges 50% in 2010 New peace treaty with Japan with new level of co-op

At an economic forum in the Siberian city of Krasnoyarsk, the minister said preliminary figures indicated FDI had fallen by 50 percent to about $12 to $14 billion.

"This (FDI) is not enough. In the best years, it reached $27 billion," Kudrin was quoted by local media as saying.

Kudrin also said Russia's industry and its gross domestic product (GDP) could rebound to the pre-global economic crisis level by the end of 2011 or the beginning of 2012.

"We hope we will reach the pre-crisis level. On the GDP front, we will reach the pre-2008 economy size at the beginning of next year," he told the forum.

The minister said Russia's GDP needed annual growth of 6-7 percent.

"We will see in the coming years a stable growth of around 4 percent and above. However, for Russia, the level of a mid-ranking economy is insufficient," Kudrin said.

"We need a significantly higher growth rate of 6-7 percent," he said.

At the end of January, the Federal State Statistics Service (Rosstat) said Russia's GDP grew by 4 percent in 2010, higher than the latest 3.8-percent forecast.

In 2009, the Russian economy, smashed by the global economic crisis, saw its worst recession in decades, with GDP shrinking 7.9 percent.


Chinese tourists as top shoppers

Since last summer, Chinese tourists emerged as the top tax-free shoppers in Europe.

Golden run ahead
Looking abroad
Mapping out a plan

European Edition


The green lantern

Environmental concerns are shedding new light on a colorful tradition

Inland interchange

Chongqing bets on its position as a hub for China's west.

Zooming in on Chinese skies

Helicopter companies ride on country's growing interest in luxury aviation.

Adventures of Pierre
Top 10 of 2010
China Daily in Europe