Jobless level up
Russia may have exited the recession, but authorities are raising the target numbers for Moscow's unemployment levels. As part of a special project to ease pressure on the employment market, City Hall set a goal this year of keeping unemployment to under 1 percent of the working population compared to 2010’s 1.4 percent target.Unemployment in the city stood at 0.91 percent, meaning the authorities were on target for 2009. Since January 2009, the city had managed to reduce a deficit in the regular labor force despite difficult economic conditions. As of January 1, the labor force deficit stood at 22,000 people and in September that had fallen to 18,000 people.GDP could hit 1.3 percent in 2010
GDP growth in Russia in 2010 could reach 1.2-1.3 percent. Long-term growth would depend on how effective the processes of reconstructing the Russian economy, as companies are likely to increase their investment. It is unlikely to see growth rates of 4-5 percent in the next 10 years.
Russian GDP fell 9.5 percent in the first quarter of 2009, year-on-year, due to a slump in construction (a decline of about 20%), lower tax intake, falling investment and retail trade. Under the official federal budget forecast, Russia's GDP is set to decline by 2.2 percent in 2009. However, the IMF has predicted that Russia will see a 6 percent GDP fall.
“With a much worse global financial outlook and oil prices in the $45 a barrel range, Russia's economy is likely to contract by 4.5% in 2009, with further downside risks," the World Bank said in its Russian Economic Report.
Russia's GDP grew 5.6%, year-on-year, in 2008.
