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The Ministry of Economy expects weak growth in industrial production

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%.


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).


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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