Murmansk economy continues downturn
The positive signals which appeared to be the first signs of a crisis recovery vanished, and the economy of Murmansk Oblast in the third quarter of the year experienced a new wave of stagnation and negative growth, the latest Barents Monitoring report reads.
The report, which has been written by the Norwegian Barents Secretariat’s office in Murmansk, shows that the Murmansk regional economy continues to struggle with the serious consequences of the financial crisis.
In the period July-September, the powerful industrial corporations in the region further cut output. The index number of industrial production by September 2009 totaled 90,2% of the corresponding period January-September last year. The slump in industrial output was primarily burdened by the downturn in processing industries, especially in machine engineering, production of goods made of wood and non-metallic mineral products.
The output of the processing industries in the third quarter of 2009 dropped almost 15 percent year-on-year. Over the nine months of 2009, the figures for the processing industry contracted by 11,8 percent compared with the same period of 2008.
The mining output in the period was 92,2 percent of last year’s level. On the whole, in the nine first months of 2009 the downturn in the mining industry amounted to 13,3 percent compared with the same period of 2008.
Also the regional fisheries in the period experienced negative figures. The positive effect of newly introduced fishery regulations (starting from 2009, fishery companies must deliver fish caught in Russian waters to Russian ports) was considerably reduced in the second quarter, and by the third quarter had no effect. Catch level and fish processing was in Q3 below the level seen a year ago.
Similarly, the negative situation in the regional construction industry continues. Q3 figures show a turnover of only 62,8% of last year’s level.
The same negative trend can be found in investments and foreign trade. The volume of investments has been reduced every quarter compared with 2008, when there was a growth in investments. The figures for the third quarter were only 56% of last year’s level. Foreign trade was in the period 32% down compared year-on-year.
Within the transport section, the situation remains negative with freight turnover dropping. Over the three quarters of 2009, transport companies transported 27 mln tons of cargo what is by 7,7 percent less than in 2008. The largest decrease is still recorded within railroad transportation – where freight turnover fell by 15,8 percent. At the same time, the volume of cargo transported by sea has increased - by 17,6 percent.
However, the social situation in the region remains stable. The government policy aimed at prevention job cuts helps to avoid considerable number of dismissals in regional enterprises. As a matter of fact, the number of unemployed over the quarter kept decreasing.
