Russia's economic growth has fallen below the world's average for the first time in five years, Economic Development Minister Alexei Ulyukayev said Wednesday.

"This year, for the first time since the global crisis (in 2008) , we have the GDP below the world's average. This is a very serious red signal for us," Ulyukayev told members of the State Duma, or lower house of the parliament.

The economic growth has been falling since the second half of 2012, with the GDP expanding only 1.4 percent in the first half of 2013 over the same period last year, he said.

He underlined flat growth in the industrial sector due to weak demand on global markets and recession in Europe, saying that these factors combined have hit export-oriented Russian economy.

Capital outflow from Russian economy could amount to 70 billion US dollars, the ministry has forecast.

Ulyukayev also warned that Russia would hardly catch up with the world's average pace of growth in 2014 too.

Among BRICS countries, which also comprises Brazil, India, China and South Africa, Russia will lag behind its peers, he said.

Only 2 percent of Russians are ready to start business compared to 21 percent in other BRICS countries on average.

Russia downgraded its 2013 growth forecast for the second time this year in August, when it slashed its estimate from 2.4 percent to 1.8 percent.

Global Times