Industrial slump on the cards

According to business daily Kommersant, new statistics from Rosstat [Federal State Statistics Service] released on 15 October 2012 demonstrate that industrial growth has been slowing, which would appear to indicate that any growth can be attributed to the oil sector, and first and foremost to high oil prices.

The statistics provide further clear signs that consumer demand is tanking and that demand would appear to have driven in part in the second quarter of 2012 by abrupt growth in consumption by the state (up by 1.1 per cent).

High oil prices have adversely impacted growth by raising company costs and leading to cutbacks on the investments required for to promote development and boost the Russian economy.

It would appear that only state investments (net of erosion attributable to inevitable corruption costs) could alter the picture.

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