OREANDA-NEWS The growth of Russian industrial production is constrained by structural factors and will slow down in the future. This was reported by RIA Novosti with reference to the analytical report of the Eurasian Development Bank (EDB).

According to the bank, in the first six months of 2024, Russian GDP grew by 4.7 percent year-on-year. Industrial production increased by 4.4 percent. At the same time, growth was 3.7 percent in the second quarter, although it was 5.6 percent in the first. Such a slowdown is considered a sign of a decrease in the overheating of the economy.

The EDB emphasizes that capacity utilization remains steadily near historical highs. Businesses complain of a shortage of staff, and unemployment has fallen to 2.4 percent, again updating the historical low.

"Industrial production has passed the peak values of the increase in output, and we expect a gradual slowdown in growth," the authors of the report believe.

In early August, Bloomberg reported that the overheated Russian economy was at risk of cooling down. There are forecasts that it will have a final growth spurt before it starts to cool down noticeably. In the second half of the year, growth will fall to two percent, and in 2025 it will reach only 0.5-1.5 percent.

The Central Bank of the Russian Federation also reported signs of a cooling economy.