No social crisis from economic downturn
Two new issues of the Barents Monitoring reports show overall decline in regional economy. The economic downturn has however not resulted in serious social consequences and unrest.
The monitoring report from the Komi Republic with trends and figures for all of 2008 shows a three percent industrial production growth. In the last quarter of the year, the regional economy was however strongly affected by the starting crisis. The first quarterly monitoring report from Arkhangelsk Oblast shows a significant drop within most parts of regional economy, except within the mining industry. Investments are down three times compared with 2008 figures. Electric power generation is at a five-year low. However, the report maintains that the drop in regional economy might now have been stalled. The report also maintains that the economic downturn does not yet have serious consequences on social life in the region. That is due to only a modest increase in unemployment and averted collapse in people’s incomes.
