Page 73 - RusRPTJul22

4.0 Real Economy 4.1 Industrial production
Industrial production fell by 1.7% y/y in May, following a 1.6% y/y decline in April. Rosstat’s seasonal adjustment shows that production fell by 0.2% m/m following a 1.9% m/m decline in April. The contraction in mining output eased from 1.6% y/y to 0.8% y/y. Capital Economics seasonal adjustment shows that oil and gas production picked up slightly – it rose by 1.1% m/m in May after falling by 7.5% m/m in April.
Rosstat also records a deepening decline in output in basic industries - from 2.6% in April to 3.2% in May in annual terms. Positive dynamics last month was observed only in construction (+3.6%) and agriculture (+2.1%).
The contraction in manufacturing deepened from 2.1% y/y in April to 3.2% y/y. There’s a lot going on under the surface. Those sectors most dependent on Western imports have been hit hard. Motor vehicles output fell by 64% y/y and electrical equipment production by 13% y/y. But there are already clear signs that import substitution is in motion and that domestic production has ramped
73 RUSSIA Country Report October 2020 www.intellinews.com