3 Aug 2023 18:12

Russian manufacturing sector to grow more than initially forecast 2% in year if H1 trend persists - minister

MOSCOW. Aug 3 (Interfax) - Russian manufacturing sector output will grow more than the previously forecast 2% in 2023 if the trend for the first half of the year persists, Deputy Prime Minister - Minister of Industry and Trade Denis Manturov said at a meeting between President Vladimir Putin and industry representatives.

"We predicted with caution in January that manufacturing would grow around 2% this year. But you yourself have already mentioned the results for the half year. And if we keep up that pace then it will be higher than we initially forecast," Manturov said, addressing the president.

Putin quoted figures from the Russian Federal State Statistics Service, according to which manufacturing output grew 6.2% year-on-year in H1 2023. Year-on-year growth quickened to 13.1% in June, from 12.8% in May.

"Clearly the main driver is the state, state-owned companies that carry out public procurement, and you have already listed the main industries - these are radio electronics, metallurgy, railway engineering and, crucially, machine tool manufacturing," Manturov said, noting that growth in these industries was more than 20%.

The pharmaceutical industry fell from a high base last year, but production has been recovering since May, Manturov said.

Rosstat has said the biggest growth in manufacturing in June was seen in sectors like computers and peripherals, optical and electronic products - 71.6%, transport means, trailers and semi-trailers - 51.7%, finished metal products except for machinery and equipment - 45.8%, furniture - 34.3%, electrical equipment - 32.1%, tobacco products - 26.3% and other transport means, including aircraft and shipbuilding - 26.1%.

Rosstat sad manufacturing output fell 1.3% in 2022.