×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Industrial Output Growth Waivers Unexpectedly

Russian industrial production slowed faster than expected in December 2011 and recorded the lowest figure since 2009, according to State Statistics Service data.

Output in December grew 2.5 percent compared with the same month in the previous year. In November, the figure was 3.9 percent. Total year-on-year output growth from factories, mines and utilities in 2011 was 4.7 percent, a drop from 8.2 percent in 2010, the service said Tuesday.

Troika Dialog analysts put the disappointing December figure, which dipped below a Bloomberg expectation survey result of 3.4 percent, down to warmer than average temperatures and fewer working days than the previous year. The 0.2 percent point fall in the December unemployment rate to 6.3 percent, they said, supported this thesis of sustainable economic growth.

Output at mines in December grew 1.8 percent year on year, industrial manufacturing showed 3.3 percent growth while utilities output shrank 5.1 percent.

The figures may weigh on the Central Bank's decision on interest rates that is expected in February. VTB Capital analysts even said in a research note that the figures might be worrying for the government. "The poor industrial production performance is likely to highlight even more the urgency of economic reforms to policymakers," they said.

Prime Minister Vladimir Putin, who is likely to become president after the election on March 4, is targeting annual gross domestic product growth of 6 percent. Growth was 4.2 percent in 2011.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more