Russian manufacturing growth expected to slow to 6-7% in 2024 from 8.6% in 2023 - industry minister

VLADIVOSTOK. Sept 4 (Interfax) - Russia's manufacturing sector has passed the phase of rapid recovery growth, but growth is expected to slow only slightly in 2024, to 6-7% from 8.6% last year, Industry and Trade Minister Anton Alikhanov said in an interview with Interfax at the Eastern Economic Forum.

"We realize that the momentum of post-recovery growth is not endless and that it was, among other things, driven by the need to quickly fill the niches of foreign companies that left. It should be said that Russian manufacturing facilities approached this challenge responsibly and managed in a very short time to develop and make quality products in priority segments of the economy that are in demand on the domestic market. We expect that for the year, through joint efforts, we'll manage to demonstrate manufacturing sector growth of 6-7%," Alikhanov said.

The ministry's forecast is in line with the expectations of First Deputy Prime Minister Denis Manturov, who told reporters on Tuesday that production in the manufacturing sector could grow by 6.8% in 2024, which is well above the forecast of 5% he made in the spring.

Alikhanov said manufacturing will be spurred by the launch of new national technological leadership projects, including for the development of means of production, new materials and chemicals, drones and ensuring transport mobility, which will have an expansionary effect on both production of goods planned under the projects, available for a broad range of consumers, as well as feedstock, materials and high value-added components from related sectors.

Government stimulus measures and domestic demand will also continue to drive growth, he said.

"We're not trying to limit Russian companies to working only for the domestic market. Our producers' positions on foreign markets are also one of the key priorities in the development of manufacturing, including as regards foreign cooperation projects that make it possible to strengthen economic ties with our strategic partners and exchange technological competencies," Alikhanov said.