GDP Grows 7.2%, Industrial Production Up 10.7% in 11M07

The State Statistics Committee reported that GDP rose 7.2% in 11M07 to USD 124.8 bln. The most significant value added growth in 11M07 occurred in retail trade (up 17.4% yoy), manufacturing (up 12.3% yoy) and construction (up 11.3% yoy). Robust growth in machine-building (up 28% yoy) and food production (up 10.8% yoy) during Jan-Nov was the main factor in the benign industrial growth rate of 10.7% in 11M07. Polina Khomenko: We expect GDP to pick up and finish 2007 at 7.3%, reaching USD 140.5 bln. Our industrial output forecast of 9% in 2007 turned out to be conservative; we upgrade it to 10%.