23 Aug 2023 17:34

Russian manufacturing strategy through 2035 assumes average annual growth of 4%, limited recovery growth

MOSCOW. Aug 23 (Interfax) - The updated consolidated strategy for the development of Russian manufacturing through 2030 and until 2035 assumes an annual average growth of 4%, Deputy Prime Minister - Russian Industry and Trade Minister Denis Manturov said at a government meeting on Wednesday.

"One of the strategy's fundamental indicators is an annual increase in production volumes by an average of 4% until 2035. In order to guarantee reaching these rates, we have to overcome structural growth constraints. This is what the priorities of the strategy are focused on," he said, presenting the document to the Cabinet.

As one of the priorities, the deputy prime minister called for the launch of a new investment cycle with double the annual investments in manufacturing by 2030 compared to 2019.

The results from H1 2023 show that output in manufacturing industries rose 6.2% compared to H1 2022. Growth of more than 2% is expected for the year, the Ministry of Industry and Trade previously said.

"Despite the good dynamics in the production index, I should note that the potential for recovery growth is limited," Manturov said.

On Wednesday, the government considered a consolidated strategy for the development of manufacturing in Russia through 2030 and for the period until 2035. The previous version of the document was approved in April 2020 with implementation through 2024. The strategy's goals for growth compared to pre-Covid 2019 were 3.3% in 2022, 10% in 2023, and 16.8% in 2024. Sectoral strategies for Russia's manufacturing sector are formed taking into account the consolidated strategy.

The volume of manufacturing production growth in 2022 decreased 1.3% compared to 2021, Rosstat reported.

The Industry and Trade Ministry told reporters that the consolidated strategy for manufacturing through 2030 and the period to 2035 envisaged growth compared with the baseline year 2019 of 8.3% in 2023, 10.4% in 2024, 23.8% in 2030 and 55% in 2035.

Industries the ministry is responsible for should account for 13.78% of Russia's GDP in 2023, compared with 13.6% in 2022, rising to 13.94% in 2024, 14.4% in 2030 and 15.45% in 2035.