F&C: Russia growth to be higher than forecast

F&C's Gareth Morgan says Russian President Dmitry Medvedev may have underestimated the country's recovery, with the manager predicting GDP growth in excess of 5% next year.

The President said Russia would be hit harder than initially expected, with GDP dropping by around 7.5% this year, surpassing earlier forecasts of a 3%-3.5% fall. The collapse in commodity prices earlier this year have been largely to blame for the sharp correction in the country's GDP estimates. However, Morgan says recent data suggests Russia's economy was past the worst in the second quarter, with the recovery in commodity prices and export demand being the major drivers. "Domestic consumption remains weak but sentiment is improving as unemployment rates are falling from previou...