MOSCOW — The economy ministry of Russia has decreased its forecast for capital-investment growth from 10 percent to 9.5 percent for 2005, and from 11 percent to 9.8 percent for 2006, a source in the ministry has reported. The source has said that the ministry had cut its forecasts for capital-investment growth for 2007 and 2008 as well, which are now rated at 9.1percent and 9.3 percent respectively.

The source has also observed that on the whole, investment dynamics are worse than in 2004, and below expectations too, and therefore the economy ministry has reduced its forecasts. In April 2005, capital investments stood at RUR203.4bn (approx. USD7.24bn), up by 11 percent from April 2004. In January to April, investments grew by 9.8 percent compared with a year earlier. The ministry is about to submit its adjusted forecast to the government today.