IMF downgrades Russian economy outlook

The International Monetary Fund (IMF) has lowered its forecast of Russian GDP growth in 2013 from 3.4 percent to 2.5 percent, head of the IMF mission said.

"The growth will amount to 2.5 percent in 2013 and to 3.25 percent in 2014," Antonio Spilimbergo told reporters following talks with Russian government officials here Tuesday.

In April, IMF forecast that Russian economy would grow by 3.4 percent in 2013 and by 3.8 percent in 2014, reported Xinhua.

According to IMF, it downgraded the outlook due to falling investments into Russian economy and weaker foreign demand on Russian export.

Russia's Ministry of Economic Development expects the economy to grow 2.4 percent in 2013 and 3.7 percent in 2014.

IMF also forecast an inflation rate of 5 to 6 percent in 2013. For 2014, it said the inflation rate will be higher than the 4-5 percent estimated by the Russian central bank.

Also Tuesday, Russia' deputy economic minister Anton Siluanov said that capital outflow in May has sped up to $8 billion, twice that of April.

The ministry expects net capital outflow to reach $30 to $35 billion by the end of 2013.