Central Bank Cuts Reserves Outlook

The Central Bank said Wednesday that it had cut its growth forecast for international reserves next year because the trade surplus will probably post a "significant" decline.

The reserves are set to fall by $4 billion, compared with a previous estimate for growth of between $58.9 billion and $120.6 billion, the Central Bank said in a report. They will probably increase by $70.9 billion this year, it added.

The value of the country's reserves fell to $530.6 billion in the week ending Oct. 10.

Net private capital outflow may reach $20 billion in 2008, while Russia's current account will "retain stability" with the estimated average price for Russian oil at $101.5 a barrel, the Central Bank said.

"The decline in growth rates of goods and services output in the world that began in 2008 will continue in 2009," the report said. Expansion in demand for Russian goods from "main importers" will also slow next year.