FX.co ★ Russia Industrial Output Growth Misses Forecasts

In March 2025, Russia's industrial production experienced a 0.8% increase compared to the same period the previous year. This follows a modest 0.2% rise in February, although it fell short of market expectations, which anticipated a 1.8% growth. The data reveal that growth is largely confined to sectors related to military production and those substituting sanctioned imports, while other industries continue to stagnate or decline. Among the primary categories, manufacturing output saw accelerated growth, increasing by 4% compared to 3.2% in February. Meanwhile, declines persisted in the extraction of raw materials (-4.1% as opposed to -4.9%), electricity and gas supply (-2.1% compared to -3%), and water and sewage services (-1.4% versus -1.8%). On a month-to-month basis, industrial production surged by 9.5%, marking a strong recovery from a 0.4% decrease in the preceding month.