International ratings agency Standard & Poor forecast that Russia's gross domestic product growth is to slow to 3.5% in 2012.

Mr Jean Michel Six, S&P chief economist for Europe, said in a statement that "Following 4.2% growth in 2011, we think the slowdown will lead to GDP growth of about 3.5% for the full year."

In 2011, Russia's gross domestic product grew by 4.2%, the world’s third highest growth rate among leading economies. The government expects it to grow 3.7% in 2012.

The agency stressed that Russia's economic growth was high last year owing to strong industrial production, lower unemployment and buoyant consumer demand, while capital outflows had accelerated due to perceived investment restraints and political uncertainties about structural reforms.

S&P also said that Bank of Russia estimated the outflows at USD 84 billion in 2011, the second largest outflow in the history of modern Russia.

Mr Six added that "Looking forward, it is difficult, in our opinion, to see what would slow this rise in capital outflows in 2012. Meanwhile, political uncertainties at home will not necessarily disappear immediately after the presidential elections. There will still be many questions relative to the pace at which the new government will be ready to undertake structural reforms."

(Sourced from www.rian.ru)