Arkhangelsk economy looking for growth key
People got more incomes and unemployment remains at a low level. However, the economy of Arkhangelsk Oblast in 2007 still failed to produce major results.
The Arkhangelsk Oblast, long dependent of incomes from the paper and pulp industry, in 2007 only saw a slight economic growth. Despite an eight percent growth on the national level, the resource-rich region in Northwest Russia struggled to find the key to growth. Also the investment level in the region is unstable. Last year, investments were down 37 percent to a total of 27,2 billion RUB.
Several of the big industrial plants in the region, among them the shipyards in Severodvinsk and the space centre in Plesetsk, are state-owned and do not contribute with tax revenues to Arkhangelsk.
According to a regional social and economic report, presented by the regional administration, the industrial production in the region in 2007 grew 11 percent. However, all the growth came within production and sales of electricity, gas and water. Mineral extraction was down 0,9 percent, while the processing industry fell dramatically with 21,3 percent.
The people of the region did still experience several positive tendences. According to the report, salaries increased more than 20 percent to an average of 12800 RUB and unemployment remains at the modest 2,2 percent of the work force.
The key sectors of the Arkhangelsk economy last year sew red figures. The production of paper and pulp was down with respectively 0,5 percent and 1,1 percent. Also production figures from the fish industry were down with 2,2 percent from 2006.
Among the biggest losers was the construction industry, the economic results of which was as much as 52,4 percent lower than in 2006, following first of all last year’s standstill in construction of the Nyuksenitsa-Arkhangelsk gas pipeline.
The incomes of the agriculture sector were down 15,4 percent from 2006 to a total of 6,3 billion RUB. The regional transport sector’s goods turnover was down 1,2 percent.
Meanwhile, the turnover of the regional retail trade saw an increase of 9,2 percent to a total of 74,2 billion RUB.
Read the social-economic figures from region at the Arkhangelsk administration’s website
