Sensing the end of crisis
The economy of Arkhangelsk Oblast is gradually reviving after more than a year of serious crisis. However, the positive trend is partly nurtured by developments in the neighboring Nenets Autonomous Okrug.
After a twelve percent drop in Regional Gross Product (GRP) in 2009, the first half of 2010 again saw growth in the Arkhangelsk regional economy. An impressive eight percent GRP growth in the first part of 2010, as well as positive dynamics in the main industries definitely signal that the regional economy is gradually restoring the pre-crisis volumes, the latest half-year Barents Monitoring report reads.
The report is written by the Norwegian Barents Secretariat’s regional office in Arkhangelsk.
However, the positive trend in the region is partly nurtured by the oil-rich and prosperous Nenets Autonomous Okrug, the neighboring subject, which is a constituent part of Arkhangelsk. Thus, more than a half of the total amount of capital investments in Arkhangelsk Oblast was made in the Nenets AO.
In the first half of the year the growth was observed practically in all main sectors of the Arkhangelsk regional economy. Especially important were the positive tendencies in the industries, which constitute the backbone of the economy of Arkhangelsk oblast, such as pulp and paper industry, timber manufacturing, transport and construction. Timber production is for example developing positively with volumes often higher than pre-crisis levels. The period saw major growth in industrial production. However, by June the positive tendencies were changed by negative trends and in July the industrial production index slightly dropped.
The revitalization of the industrial production positively influenced the situation on the labor market. This is demonstrated by a declining number of unemployed and a permanent increase in the number of announced vacancies. In 2009 the number of people employed in the regional economy reached an absolute low for the last ten years and totaled 629,8 thousand.
The average incomes of the population continued to grow. The monthly incomes in the period grew 10 percent more than in the same period last year. However most of the income growth was leveled by inflation which in the period amounted to about six percent.
