The Ministry of Economy expects weak growth in industrial production

Минэкономразвития ожидает слабый рост промышленного производства

By the end of 2016, the Ministry of economic development of the Russian Federation expects +0.4% growth in industrial production and -2.0% decline in the volume of communication services.

For 8 months of the 2016 financial results of large and medium companies in the country amounted to 7.0 trillion rubles (+17.8%). At the same time the profits rising is followed by decrease in the number of companies (-5.3%) and the share of profitable entities (-0.5 PP).

The mining industry

In the mining industry, there is the trend of slow growth +2.4% (January-September 2016 to January-September 2015, then y-o-y).

Oil production (incl. gas condensate) increased by +2.4% (y-o-y), natural gas is +0.2% (y-o-y), coal – by +6.0% (y-o-y). The above-mentioned was simultaneously accompanied by the growth of exports to far abroad countries +7.7%, +5.2% and +11% (for 8 months. 2016), respectively.

Receivables in the sector has been significantly over payables (40.8%), which could require expensive loans.

The manufacturing industry

The manufacturing industry continues to decline, but its rates fall – a fall of -0.9% (y-o-y).

In the manufacturing sector growth leaders were: leather and footwear production +6.4% (y-o-y); manufacture of rubber and plastic products – +5.8% (y-o-y); and chemical production +4.6% (y-o-y).

The outsiders were: manufacture of other non-metallic mineral products -7.9% (y-o-y); production of vehicles and equipment -4.5% (y-o-y); and production of coke and oil products – -3.4% (y-o-y).

Production and distribution of electricity, gas and water

The needs of the country’s electricity are almost entirely (99.7%) covered by domestic manufacturers. The bulk of supplies falls on thermal power plant. The growth of production of electricity amounted to +0.7% (y-o-y). Thus, the share of profitable organizations in this sector in August 2016 amounted to 49.4%.

Transport

In the first 9 months of 2016, the volume of commercial transportation of goods rose by +1.1% (y-o-y). The freight turnover rose by +1.9% (y-o-y), and passenger traffic fell by -4.1% (y-o-y).

Telecom

The volume of communication services continues to fall. For the first 9 months of 2016 fall amounted to -4.6%. According to the results of 2016 are expected to decline in outcome indicators at -2.0%.

Source: Russian Ministry of Economy

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