#3 - JRL 7305
IMF sees Russian economy up about 5.9 pct in 2003
MOSCOW, Aug 28 (Reuters) - The International Monetary Fund believes Russia's economy is likely to grow by around 5.9 percent in 2003 after expanding 4.3 percent last year, an IMF resident representative said on Thursday.
"We do not have any significant disagreement with official projections (for economic growth) which is now 5.9 percent for this year and 5.2 percent for 2004," Goohoon Kwon told Reuters.
"We are revising our forecast upwards on the basis of a stronger outturn for the first half of this year and because of much higher than projected oil prices," he added.
Kwon said he expected the IMF to release precise growth estimates within a week.
Previously the IMF had forecast 4.0 percent growth for 2003.
"We are finalising our numbers. It would be misleading if I give you precise numbers...(but) it will be similar to official projections which are 5.9 percent for this year and 5.2 percent for 2004," Kwon said.
Russia's economy powered ahead 7.2 percent in the first half of the year thanks to high global crude and commodities prices, mounting investment and robust domestic demand.
This followed sluggish growth in the first half of 2002 and government officials have warned that the country's economic growth was likely to slow down in the second half of the year.
Earlier this month the World Bank also upgraded its outlook on Russia's economic growth saying that six percent growth was the most likely outcome in 2003 if global prices for crude stay at current levels.
Some private economists are forecasting as much as seven percent annual growth for the oil-exporting economy in 2003 but say Russia needs to step up on structural reforms for sustainable growth in years to come.
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