The Mining Industry Pulls Ahead

8 august 2019

In Russia's industrial sector the mining industry's growth is outpacing growth in all the other sectors, according to the new bulletin on the current trends in the Russian economy published by Analytical Center experts. 2018 saw 2.9% growth in industrial production with the mining industry's output growing by 4.1% and the processing sector's output growing by 2.6%.

The fact that in recent years the share of the mining sector in total industrial output has been growing resulted, according to the authors of the bulletin, from the launch of new natural gas extraction and liquefaction capacity.

Industrial output by region remains very uneven, the analysts note. In 2018, industrial output was on the rise in 66 Russian regions. And even though growth was reported in all groups of regions as classified by Analytical Center, in 2018 faster growth in output was seen in Sevastopol, Yamalo-Nenetsky autonomous district as well as the Astrakhan and Tambov regions.

Experts cite data of the Federal Statistics Service, according to which as of June 2019 the factors holding back natural resources and processed goods production growth included weak domestic demand, high taxation and uncertainty about the economic situation as a whole (it should be noted that it was this factor that for a long time was mentioned in most of surveys).

For more details see the bulletin "The Trends in Industrial Production in Russia: Faster Growth in the Mining Sector".

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