Russian economic output expanded 4.2 percent in the January-June period as the country emerged from its biggest downturn in a decade, the government said Monday, according to AP. Economic Development Minister Elvira Nabiullina was quoted by Russian news agencies as saying the economy benefited from a 10.2 percent rise in industrial production. The six-months result will likely raise the government's forecast for growth above its earlier projection of 4 percent for 2010, she said. Nabiullina lamented, however, that foreign investment in Russia rose only 1.3 percent in the January-June period despite the government's recent moves to make investing in Russia more transparent. The Russian economy contracted nearly 8 percent last year, but has been recovering since the third quarter when commodity prices _ the backbone of the economy _ started to recover. Higher oil prices will also help Russia preserve its 1.23 trillion ruble ($40 billion) rainy-day fund into next year, officials say.
