MOSCOW, May 20 (Reuters) - Russia's industrial production growth slowed in the first four months of 2002 according to preliminary figures, but the head
of the state statistics bureau said the trend for major indicators was still
positive.
According to figures quoted by Goskomstat head Vladimir Sokolin in a weekend
interview with Reuters, Russia's industrial production grew only 3.0 percent
from January to April, down from 5.6 percent in the same period last year.
"The tempo of the first quarter of this year is not as high as last year, but there is still a positive trend in practically all major indicators," Sokolin said.
He added that the five public holidays observed across Russia in May could affect the month's economic indicators.
"This is a new phenomenon for our economy, and we cannot say what influence this will have," he said. "But industrial production for the month, in comparison to April, will be lower."
Sokolin, who has headed Goskomstat since July 1998, said that figures obtained by the committee showed Russia was on course to achieve the 3.3-3.5
percent GDP growth targeted by the government for the first quarter of the year.
In the first three months of 2001, Russia's GDP grew 4.8 percent. GDP figures for 2001 could still be slightly revised, the country's top statistician said.
But he said Russia must shift away from its Soviet-era emphasis on heavy industry and towards services if it wants to achieve the speed of development targeted by the Kremlin.
During his annual "state of the nation" address, President Vladimir Putin blasted his cabinet for not having enough economic ambition.
Industry accounted for 44.3 percent of Russia's GDP in 2001, with the service industry accounting for 55.7 percent.
"In Western countries the production of goods is less than 20 percent," Sokolin said.
He added Russia must be prepared for a slower rate of investment growth, after two years of rapid capital influx.
"It is interesting that a powerful and economically dynamic country such as Cyprus should occupy third place in terms of accumulated foreign investment in Russia," he added. "And in the first quarter of this year, Cyprus was the
top investor, in areas including energy and non-ferrous metals."
Many economists believe that most of the capital flowing back into Russia from Cyprus is in fact Russian, deposited or invested in the island for tax reasons.
Russia's top foreign investor is the United States, followed by Germany.