Russia's economy is suffering from severe sanctions because of the Ukraine war. Despite this, the closely watched Purchasing Managers' Index climbed to 50.8 points in May. This means that Russian industry is back on the growth path for the first time since the beginning of the year.
Industry in Russia grew again in May for the first time since the beginning of the year, despite international sanctions due to the war against Ukraine. The Purchasing Managers' Index (PMI) climbed 2.6 to 50.8 points, S
"Slower declines in manufacturing, new orders, employment and inventories all contributed to the rise in the seasonally adjusted PMI," said analysts at the financial information firm. In addition, there are longer delivery times. These are usually a sign of improving demand, but were caused here by sanctions and logistical issues. Nevertheless, this also contributed to the increase in the barometer, which is closely monitored on the financial markets.
Russia's manufacturing sector remains under severe pressure from sanctions imposed by the West over the invasion of Ukraine that began on February 24. Production continued to decline in May, as S
According to Presidential Advisor Maxim Oreshkin, the Russian economy will collapse far less than expected this year. Oreshkin recently said that gross domestic product (GDP) will fall by a maximum of five percent. The Ministry of Economics had previously forecast a minus of 7.8 percent, after having previously forecast a slump of more than twelve percent.
