Dmitry Evdokimov named the factors of industrial production slowdown in the Russian Federation

The annual growth in industrial production slowed sharply, amounting to 2.2% in January and 0.2% in February. Among the unfavorable factors causing a decline in industrial production, Dmitry Evdokimov notes a high key rate, limited imports of equipment and a decrease in mobilization demand. The expert has expressed concern that the output volume, which returned in February to last autumn’s volumes, can increase the likelihood of an industrial production decline starting from Q2 2025. According to Dmitry Evdokimov, should the dynamics of budget expenditures slow down considerably after Q1, with loan interest rates remaining at the same level, the negative trend in industry is likely to intensify.

Dmitry Evdokimov highlights the fact that the capacity of the civil industry in Russia is limited by low investment activity and difficulties in importing equipment and technologies. Therefore, an active recovery of industrial production without institutional reforms and access to global markets should not be expected.

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