Russian economy to slow down in 2008

Russian economy is revealing a signs of overheating and in 2008 is expected to slow down. Economists claim that Ruble may continue to reinforce because of the high inflation rise. Growth of the gross domestic product (GDP) in Russia slows in 2008 at 6.7% (previous 7.6%) and the government calculate upon rate at the level of 6.6%. Ruble should strengthen against the Dollar/Euro basket up to 1.4%.
"Russian economy has every sings of overheating, which is carrying rapid slow down risk in future development", said Alexander Morozov from HSBC. Main risks for the russian economy are global loan crisis, world's economy deceleration and the potential price correction for the crude oil.
Government's principal aim in the last year was economy diversification, within the scope of filling it, created many institutions supporting the growth. These will lead away the capital to the non-energetic sectors. According to the president Vladimir Putin, government should focus on reducing the inflation rate as Moscow nearly missed its goal last year. It is expected to reach 12% for 2007, what is 4% more as primarily intended government's goal. In the annual report, Central Bank of Russia provided clear aim for the inflation rate to be 6% - 7%. Vice-president Alexej Uljukajev added that market should prepare for the higher volatile exchange rate for Ruble. What is more, Central Bank allowed revalorization of the Ruble last year against Dollar and Euro to soften the inflation rise and this trend will continue for the first months of the new year.