Mining and construction spur moderate growth in Barents Russia
A new comparative survey shows that the economy in the Russian part of the Barents Region shows clear signs of recovery. The mining and construction industries are the two main growth sectors in the region.
The survey, which is based on 2010 half-year figures from the regional statistical services, shows that the mining and construction industries in the first half of 2010 experienced significant growth, while other industries continue to struggle with moderate, and negative, growth.
The survey is composed by the Norwegian Barents Secretariat’s office in Arkhangelsk.
The construction industry is a driver in the development. Significant growth within the sector was posted in all the five Barents subjects, and especially in Karelia, which had a more than 50 percent growth in the industry. The Nenets AO posted a close to 40 percent increase, while Arkhangelsk and Komi had a 20 percent growth.
In the mining industry, the growth was biggest in Karelia (more than 30 percent) and in Murmansk (about 15 percent).
In the other traditional industries, however, results show that the economic crisis continues to haunt the region. Both in agriculture, manufacturing and processing and in electricity, water and gas distribution, hardly any growth was registered at all.
Similarly, the investment level shows a generally low interest among investors. In all the regions with the exception of Karelia the investment level dropped in the first half of 2010 compared with the same period in 2009. The drop was most significant in Murmansk – almost 50 percent. In Karelia, the investment level slightly increased in the period. However, according to the latest Barents Monitoring report, this is linked with significant sums of federal money injected in the regional economy.
Also foreign investments saw a major decline in the period. In all the regions with the exception of Nenets AO the drop was dramatic – in Murmansk and Karelia with more than 75 percent and in Arkhangelsk and Komi with respectively 60 and 30 percent. Only the oil-rich Nenets AO saw a growth in foreign investments in the period.
Karelia is the big growth winner in the survey with very positive figures both within mining and construction. However, in other parts of the economy the region experiences the same negative trends as the other federal subjects.
Read more about economy in Barents Russia in the Barents Monitoring reports
