Russia ups GDP forecast

Russian's economy will grow by 3.5 percent, slightly higher than an earlier 3.4 percent forecast, Deputy Economy Minister Andrei Klepach said on Tuesday, as the average rouble exchange rate will fall below earlier expectations. "(Economic) growth should speed up in the second half of 2012," Klepach said. "Housing and pipeline construction will witness a certain boost." The ministry amended its average rouble exchange rate to 31.3 from 29.2 roubles per dollar, he said.
The rouble has been under pressure from oil price fluctuations throughout 2012, and is expected to average $109 per barrel under the new forecast, down from $115 per barrel under an earlier estimate. The Kremlin went on a spending spree ahead of March polls, which secured Vladimir Putin - president in 2000-2008 - a new six-year term in power and significantly strained the budget, largely reliant on crude exports.