According to the Russian Economy Ministry, industrial production in the country fell by 5 percent in April compared to the previous month.
This is happening amid a historic labor shortage. The unemployment rate has hit a record low of 3.3 percent.
Russia’s war against Ukraine has triggered a mass exodus of workers and the mobilization of 300,000 soldiers.
Official Russian statistics released on Wednesday point to limited economic output as industrial production fell sharply. Some analysts have previously warned against putting too much faith in Kremlin data, as it is often used to paint the Russian economy in a more positive light.
According to the Ministry of Economic Affairs, however, the industrial production in April by five percent compared to the previous month, like Reuters reported. And this despite government spending and demand for military production.
The decline coincides with a historic labor shortage that is weighing on factories. According to a Central Bank survey last month, the Russian economy is struggling due to losses in the Ukraine war and a mass exodus faced with a record shortage of workers. About a million people have Russia left, whether to avoid an October mobilization decree or to find better economic opportunities.
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Unemployment rate in Russia at record low
On Wednesday, the Economy Ministry confirmed the earlier results and stated that the unemployment in Russia fell to a record low of 3.3 percent.
Meanwhile they went retail sales in April fell 0.1 percent mom, indicating weak consumer demand. Monthly GDP growth also slowed to a seasonally adjusted 0.2 percent in April.
The corporate profits Russia fell 22.3 percent year-on-year in the first quarter, while capital investment fell to 0.7 percent from 13.8 percent a year earlier.
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