Russian think tank warns of stagnating industrial output, investment

28/4/2024 6:52

        Russia's industrial production and investments are stagnating, its exports of goods are continuing to deteriorate and profitability in most industries is declining, a think tank close to the government has said in a report.
        
        The Centre for Macroeconomic Analysis and Short-Term Forecasting issued its downbeat assessment on Saturday, also warning about a shortage of imported components and raw materials.
        
        Despite Russia's ongoing war in Ukraine, its economic performance last year exceeded the expectations of officials and analysts. But in its monthly analysis of macroeconomic trends for April, the centre said it saw signs of a deterioration in many indicators at the end of 2023 and the beginning of 2024.
        
        The emerging trends are a cause for concern, it said, while long-term challenges to the economy need solutions “here and now."
        
        "In most of the main types of activity, the transition to stagnation has either already occurred or is increasingly visible,” it noted, adding that high interest rates were beginning to slow the growth of consumer demand, seen as a key driver of economic growth.