In 2017 both industrial production and the GDP increased

12 july 2018

In late June 2018 the Federal Statistics Service significantly revised the industrial production data for 2016-2018 after getting revised data from respondents, as a result estimates improved for all sectors of the economy except for the extractive industry. According to the updated data, industrial production as a whole increased by 2.1% in 2017, which is 1.1 percentage points more than the figure reported prior to the revision, Analytical Center experts write in their bulletin on the current trends in the Russian economy titled Industrial Production Trends: Regional Differences.

According to the analysts, in 2017 both industrial production and GDP grew. Industrial production increased by 0.6 percentage points more than GDP.

As for total sales in 2017, here the share of the extractive industry was 24.4%, that of the processing sectors was 65.0%, electricity, natural gas and steam sales made up 9.1% of the total while water supply and water drainage accounted for 1.6% of the total, the analysts note.

According to the Federal Statistic Service's most current data, industrial production in May 2018 expanded by 3.7% on an annualized basis, having grown five months in a row. Meanwhile, there is still a lot of variation in industrial output growth across the regions, the experts believe. In 2017 industrial production growth varied from region to region from -10.8% (in Sevastopol) to +41.9% (in the Jewish Autonomous Region). 73 regions (as opposed to 67 in 2016) saw their industrial production increase in 2017.

In accordance with the synthetic classification of the Russian regions that the Analytical Center uses, in 2017 all types of regions saw positive industrial production growth. The most developed regions relying on processing sectors saw the fastest growth (+5.2%), of which the Arkhangelsk Region was the absolute leader in industrial production growth at +31.1%, without the Nenets Autonomous District taken into account.

Experts note that the increase in industrial production in January-May 2018 on an annualized basis was recorded in all types of regions in the country except for agrarian regions with a medium level of development where industrial production remained at the level seen in May 2017. The industrial production growth rate in the developed regions varies between 2.8% in regions relying primarily on extractive industries to 5.9% in regions with more diversified economies.

For more information see the bulletin Industrial Production Trends: Regional Differences.

For other bulletins on the current trends in the Russian economy see Publications.