Russia's economy ministry cuts 2013-2015 GDP forecast - agency
MOSCOW (Reuters) - Russia's economy ministry cut its 2013-2015 gross domestic product growth forecast on Tuesday, saying investment by firms and consumer demand would be weaker than expected.
Economy Minister Alexei Ulyukayev was quoted by Russian news agencies as saying that gross domestic product would grow by 1.4 percent this year compared to 1.8 percent. The cut was expected.
Analysts polled by Reuters last week forecast the economy to grow by 1.5 percent this year.
Ulyukayev said GDP was likely to grow by 2.5 percent next year, down from an estimate of 3 percent, and by 2.8 percent in 2015. An earlier forecast envisaged GDP growth in 2015 of 3.1 percent.
The cuts come after data have showed that industrial output and investment by companies are stagnating, which combined with falling consumer demand, do not bode well for the country's economic health next year.
"Stagnation with definitely continue, with moments of recovery," news agency RIA Novosti quoted Ulyukayev as saying.
The ministry cut its 2013 forecast for investment by firms to 0.2 percent from an earlier 2.5 percent. It has also cut this year's industrial output to 0.1 percent from 0.7 percent.
(Additional reporting by Maya Dyakina; Writing by Lidia Kelly, editing by Elizabeth Piper)
