Russia's industrial output in manufacturing expected to grow 4% in 2024 - minister

YEKATERINBURG. July 8 (Interfax) - Russia's Industry and Trade Ministry forecasts growth of 4% in output in the country's manufacturing industries in 2024, Industry and Trade Minister Anton Alikhanov said on Monday.

Alikhanov said that the volume of output in manufacturing rose 8.8% year-on-year in January-May 2024.

"Growth should continue, and we are more conservative for the year. We are aiming for a figure of 4% growth in industrial production owing to various reasons. In some places, we understand that we are slowly starting to hit the ceilings of potential growth. In other places, our business partners are waiting for the approval of new national projects for technological leadership," Alikhanov said on Rossiya 24 TV, noting that the Industry and Trade Ministry is currently coordinating with companies the types of products to which investments will be directed.

Alikhanov's expectations for growth in manufacturing in 2024 are lower than the Industry and Trade Ministry's forecast from early April. Current First Deputy Prime Minister Denis Manturov, who was deputy prime minister and industry and trade minister at that time, said that if the positive dynamics since the beginning of the year remain, then growth in the manufacturing sector could possibly exceed 5% in 2024. Meantime, Manturov cited monetary policy as a significant factor affecting growth in output in manufacturing. The Central Bank of Russia has repeatedly and clearly said recently that tightening should be expected in monetary policy.

The Industry and Trade Ministry's updated forecast coincides with the expectations of the Economic Development Ministry, which projects growth of 2.5% in the country's entire industry and a rise of 4% in manufacturing industries in 2024

Output in the manufacturing sectors of industry grew 7.5% in 2023.