Data from the Federal Statistics Service revealed a sharp drop in the growth of industrial output for March, highlighting the challenges facing the Russian economy as it tries to develop sectors not connected to oil.
Industrial production grew by only 2 percent, much lower than predicted levels of up to 5.5 percent. This also contrasted with data showing first quarter growth of consumer demand and investment.
"There is no shortage of consumer demand in Russia," Dmitry Polevoy, an economist at ING in Moscow told the Dow Jones Newswire. "But this demand appears to be for imports, rather than Russian products."
The Economic Development Ministry revised 2012 economic growth forecasts last month in light of data showing that even if modernization plans to move the country from its dependence on oil exports are fully realized, the 6 to 7 percent growth rates promised by President-elect Vladimir Putin on the campaign trail are likely unreachable. The growth estimate was revised from 3.7 percent to 3.4 percent.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
