Russia’s industrial sector in January – August 2013

Industrial production was maintained at the previous year level at the backdrop of low dynamics of industrial production development in the period of January thru August 2013. Furthermore, stabilization was determined by a growth of 1.0% in the mineral extraction sector as compared to January-August 2012. In January-August 2013, the manufacturing index accounted for 99.8% of the previous year value. It was only in March and April 2013 when manufacturing industry annual growth rates showed positive values. Decline in business activity in the economy resulted in reduction of production and distribution of electric power, gas and water by 0.9% against January-August 2012.

A narrower effective demand for products and extremely low level of investment activity had a significant effect on the dynamics of economic development. The machine building and metallurgy industries have been most sensitive to the current situation.

Given unprecedentedly low growth rates in economic development, the Ministry of Economic Development of Russia projects industrial growth in 2013 at a level of 100.7% against previously projected values of 103.7-102.0%.

 

Izryadnova O. I., Head of Structural Policy Department