Russian GDP increased in the 1st quarter or 2004 in comparison with the same period of 2003 by 8%. According to the most cautious estimations of domestic economists, the GDP growth in 2004 will be 6, 4%. Western experts are more optimistic in their forecasts. The OECD report published in April 2004 forecasts a 7% GDP growth in Russia for 2004. Influential western businessmen and independent analytic agencies are of the same opinion.

“Morgan Stanley” investment bank in their report distributed in the middle of May 2004, increased forecasts for GDP growth in Russia for the current year from 6,3 to 7%. “Standard & Poor’s”) in January 2004 increased its sovereign rating of Russia in long-term obligations to “BB+”. In May “S&P” again noted improvement of macroeconomic situation in Russia, indicating, in particular, “sustained strengthening of the state budget and reduction of foreign debt burden”.

Major factors behind the economic growth in Russia are the demand increase on the part population and improvement of the investment climate. Real disposable population income in the 1st quarter of 2004 increased by 13, 9% against the same period of 2003, and gross capital investment – by 13,1%.