Putin Claims Russia Had 3rd Highest GDP Growth in 2011

Russian President Dmitry Medvedev (L)speaks with Russian Prime Minister Vladimir Putin (R) during a government meeting in Moscow, Russia 27 December 2011. EPA/BGNES

Russia's gross domestic product grew by 4.2% in 2011 which is the world's third highest growth rate among leading economies, according to its Prime Minister and future President Vladimir Putin.

With Russian GDP growth fueled by high world oil prices, Russia was only behind China with 9.5 percent growth and India with 7.8 percent, Putin stated on Thursday, as cited by RIA Novosti.

He stressed that the GDP growth was just 1.5% in the euro zone, and 1.6% in the USA, apparently ignoring the growth rate reports about countries such as Turkey and Kazakhstan.

As for industrial production growth, Russia was placed fourth with 4.7% after China, India and Germany. In the eurozone, industrial output growth was considerably slower and equaled 3.2%, Putin said.

Russia's government debt was only 10.4% of the GDP at the end of 2011, with the sovereign debt standing at only 2.5% of the economy's size, the Russian PM pointed out, adding that Russia's federal budget surplus amounted to 0.8% of GDP in 2011 compared with the 4.3% budget deficit in Germany and 6.2% in the eurozone.

"There are even more alarming facts: the budget deficit is 10.8% (of GDP) in Greece, 9.3% in Spain, 7.1% in France, 11.2% in Great Britain, 9.6% in the U.S. and 10.3% in Japan," Putin said.

He did admit, however, that Russia needed to continue reducing its dependence on oil and gas revenues and switch to an innovative model of economic development and create no less than 25 million jobs in the country.

"Russia has restored its gold and foreign currency reserves, which currently stand at over USD 500 B. By this indicator, we hold the third place in the world," Putin said.

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