Members, usually every year. A staff team visits the country, collects economic and financial information,

and discusses with officials the country's economic developments and policies. These are

The extracts from the summary of the report dated September 21, 2005

Russia is in its seventh year of robust economic growth. This strong performance was ignited by

The sharp depreciation in the wake of the 1998 crisis, and subsequently sustained by large terms-oftrade

Gains, in combination with increased political and macroeconomic stability. Higher output

And investment in the oil sector have been key conduits of the broad based recovery, which is still

Running its course.

While still vibrant, the economy has softened notably since mid-2004, despite record high oil

prices. Yearly GDP growth decelerated from 7? percent in the first half of 2004 to 5? percent in the

Same period this year, mainly owing to lower growth in oil production and investments. Consumption

Has remained buoyant and has been the main source of domestic demand growth, fueled by

Continued rapid increases in real wages.

Monetary policy remains relatively lax. While reserve money growth has slowed somewhat since

Mid-2004, mainly because of an accelerated build-up of government deposits with the Central

Bank of Russia, it remains high, as do the increases in broader aggregates. Rising inflation, declining