MOSCOW, Aug. 12 (UPI) -- The Russian economy is slowing down, but is not headed for a recession, Economic Development Minister Alexei Ulyukayev said.
"Stagnation is probably an appropriate term [for the economy]," Ulyukayev said in his first interview since taking his post in June, RIA Novosti reported Monday.
In the second quarter, the Russian economy grew 1.2 percent compared to the second quarter of 2012, the government said Friday.
It marked the sixth consecutive quarter in which growth had slowed. But Ulyukayev said, "there is no recession. And there will not be one."
"Institutional, structural and macroeconomic factors," Ulyukayev contributed to the growth slowdown, he said, pointing out that "Russia is a middle income country but we have shouldered social obligations higher than those middle income countries usually have."
The Economic Development Ministry in July trimmed its forecast for economic growth for the year from 3.7 percent to 2.4 percent. In 2012, the Russian economy grew 3.4 percent, down from 4.3 percent in 2011, RIA Novosti reported.
