An economist explained the growth of production rates in the manufacturing industry in the Russian Federation

The growth of Russia's economy is to a greater extent ensured by the strengthening of the manufacturing industry. The reason for the latter is that Russian enterprises are becoming more and more competitive against European representatives. Maxim Chirkov, Associate Professor of the Department of Economic Policy and Economic Measurements of GUU, shared this opinion in a conversation with Izvestia on December 25.

Earlier in the day, Russian Minister of Industry and Trade Anton Alikhanov said in an interview with TASS that production in Russia's manufacturing industry in 2024 was growing at record rates. According to him, the production of computers, electronic and optical products, finished metal products, as well as the production of automotive equipment showed the highest rates.

"The main reason for the growth of production, especially in the manufacturing industry, is that Russian enterprises are becoming more and more competitive relative to their main competitors. First of all, these are European competitors. Raw materials, energy, hydrocarbons, and many goods used in this kind of production are becoming relatively cheaper in Russia. Accordingly, Russian companies receive a very tangible increase in competitiveness," Chirkov explained.

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According to the economist, the import substitution processes that have been launched in the Russian Federation provoke such growth.

"Another of the main points is, of course, the departure of Western companies that represented more high-tech sectors of the economy. When they leave, new markets open up for Russian companies," the economist noted.

He also clarified that for Western countries leaving Russia was disadvantageous, while for the Russian economy the situation turned the other way.

"Now we can state that the rate of economic growth, which we now have about 4%, is largely provided precisely by the growth of the manufacturing industry, that is, the growth rate is much higher than the average for the economy. And moreover, we can definitely say that this trend will continue next year and beyond. Russia's technological growth will certainly continue, because some negative factors will go away: in particular, the key rate will go down and new markets will open up. In general, my personal forecast for the development of the Russian economy is optimistic," Chirkov concluded.

During the "Results of the Year" December 19, Russian President Vladimir Putin noted that the growth of gross domestic product (GDP) in 2024 will be 3.9-4%. The head of state called the economy the basis of stability and defense capability of the Russian Federation. He added that Russia was developing despite external threats.