The head of the Central Bank of the Russian Federation: on the dynamics of industrial production in may will impact the secondary effects of falling demand and declining oil production

Глава ЦБ РФ: на динамику промпроизводства в мае окажут влияние вторичные эффекты от падения спроса и снижение добычи нефти

The decline in industrial production in Russia in April at 6.6% was lower than expected and than the fall in other countries, the dynamics in may will impact the secondary effects of falling demand and declining oil production, said the head of the Central Bank Elvira Nabiullina at the briefing on Friday.

“In Russia, industrial production in April fell by 6.6% year-on-year. This is less than many expected, and less (down) than in most other countries. Extractive industries, whose share in the Russian industry is high, kept the overall negative dynamics in the sector,” she said.

“However, the spread of secondary effects from the fall in final demand in related industries and the decline in oil production (because of the deal, OPEC+, which came with 1 map) have a negative effect on industrial production in may,” he awaits the head of the Central Bank.

As noted in the updated macroeconomic forecast of Ministry of economic development, “in the coming months as the opening of the economy is expected to gradually recover the dynamics of the manufacturing industry. At the same time, the issue of the extractive industries will be constrained by the restrictions on oil production under the new agreement, OPEC+, which entered into force on 1 may”. “In these conditions, the dynamics of industrial production as a whole may remain weak for a long time,” predicts the Ministry.

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