Russian industry and trade minister expects manufacturing industry growth of 0.5%-1% in 2026, target for coming years is 2%-3%

ST. PETERSBURG. Oct 23 (Interfax) - Output in Russia's manufacturing industries will grow 0.5%-1% in 2026 compared to the government's official forecast of 0.6%, Russian Industry and Trade Minister Anton Alikhanov said.

In the coming years, the ministry hopes to raise the growth rate of manufacturing to 2%-3%, and measures to achieve this indicator are currently being discussed, he said.

"We have reached a certain plateau in industrial production. We expect growth of somewhere around 0.5%-1% this year. And right now we are discussing new measures that would give us this impetus and enable us to reach rates of 2%-3% a year of sustainable industrial growth in the coming years," Alikhanov told journalists at the Russian Industrialist forum.

According to the Economic Development Ministry's September macro forecast, growth in Russia's manufacturing industry in 2026 is expected at 0.6% (lowered from the spring forecast, when 1.0% was expected), 3.1% in 2027 (2.8%), 3.4% in 2028 (3.1%) and 3.4% in 2029 (3.7%).

A restraining factor remains the decline in investment and consumer demand in the country. At the same time, there is "a certain positive dynamic in a number of sectors," Alikhanov said. For example, in recent months there has been a revival of demand in the automotive industry and in the consumption of furniture, pharmaceuticals, radio electronics, and special machinery.

It is planned that state support measures that would make it possible to restart the investment cycle will be considered at a meeting of the Coordinating Council on Industry on Friday, Alikhanov said. In particular, taking into account the wishes of business, approaches to support measures under the national projects on technological leadership will be revised, he said.

Possible amendments to the budget package are also expected to be considered at the meeting of the Coordinating Council. "The budget cycle is underway now. You know, we have met, held a whole series of meetings with colleagues from the relevant committees and are preparing amendments for the second reading. And among other things, there are a whole range of requests from transport engineering and the automotive industry for additional support measures," Alikhanov said.