Page 69 - RusRPTJul24

4.0 Real Economy 4.1 Industrial production
Russia’s industrial production growth accelerated in May to 5.3% y/y (5.2% in 5M24), being significantly higher than analysts expectations.
Seasonally adjusted (SA) month-on-month growth was 1.9%, following an estimate of 0.5% in April, according to Rosstat. (chart)
“The key contributor to overall growth, as well as the deviation from our forecast, was manufacturing, which grew 2.8% MoM SA (from 2.4% in April), helping accelerate the annual growth rate to 9.1% y/y (8.8% in 5M24). In the mining industry, a decline of 1.2% m/m SA in April gave way to an increase of 0.7% in May, which corresponds to an increase of 2.8% y/y (0.2% in 5M24),” Renaissance Capital said in a note.
The continued high rates of economic activity (including taking into account enterprise surveys for June), coupled with the persistence of increased inflationary pressure, act as a factor in favour of tightening the monetary policy of the Bank of Russia.
69 RUSSIA Country Report July 2024 www.intellinews.com