Falling industry reached a record pace since 2009 – RBC

Balashikha cotton mill.

Photo: TASS

The volume of industrial production in Russia in May 2015 fell at an annualized rate of 5.5%, according to Rosstat. So quickly the index of industrial production has not declined since October 2009. Compared to April 2015 the rate of decline in industrial production accelerated by almost a quarter – from 4.5% to 5,5%.

«In the coming months, I look forward to the same level”, – he said, commenting on the results of the April failure , deputy director of the Institute “Development Center” HSE Valery Mironov. As you can see, his prediction come true.

We also note that the volume of industrial production in Russia declining for four consecutive months – the last time growth was observed in January 2015 (+ 0.9%). In February, the index decreased by 1.6% in March – by 0.6%. In January-May 2015 the volume of industrial production in comparison with the first five months of 2014 decreased by 2.3% (in January-April, it was -1,5%).

The most significant fall in May 2015 was recorded in the manufacturing sector – are reduced production (compared to May 2014) to 8,3%.

In this issue of building bricks fell at an annual rate of 10%, footwear – by 18 , 1%, washing machines – by 20.5%, wood cabinets – 29.2%, magazines – by 29.6%, tractors – 36.3%, knitwear – by 37.5%, machine tools – 43.2% of gold and silver chain – by 58.3%, TVs and monitors – 68.8%, trolleybuses – by 75%.

In May 2015 the First Vice Prime Minister Igor Shuvalov He said that the Russian economy is not in crisis. The worst scenario is not realized, I assured Shuvalov, so it’s time to move on to the “development agenda».

Later, the former finance minister and now head of the Committee of Civil Initiatives Alexei Kudrin warned that the Russian economy is in a “full-fledged crisis” and the rate of decline will continue to grow.

«We are now in a full-fledged crisis by all accounts that exist. The pace of economic growth, according to Ministry of Economic Development, will minus 2.8%, that is, we’ll fall and is now in recession. But I think the fall will be more deeply – about 4%, “- said the ex-minister, speaking at a meeting of the Federation Council.

In early June, the acceleration of GDP decline confirmed the Ministry of Economic Development. A report issued by the Office monitoring the current situation in the economy, it was noted that in April 2015 the country’s gross domestic product shrank at an annualized rate of 4.2% against 2.7% in March.

Last week, Finance Minister Anton Siluanov acknowledged that the current economic situation, the Russians have not “fatten” for another two or three years.

Later, Professor, University of Chicago Harris School of Public Policy Studies, former Vice-Chancellor of the Higher School of Economics, Konstantin Sonin said in an interview with RBC that stagnation could drag on for 10 years.