Russia's recession deepens, according to PIE

Analysts at the Polish Economic Institute point out that the recession in Russia is deepening. Among other things, they point to the collapse of the automobile industry there due to the country's dependence on foreign technology. They add that imports to the port of St. Petersburg, for example, have declined by 67 percent.

The situation in Russian industry has deteriorated significantly, PIE analysts noted. They added that the most significant decline is in the production of passenger cars ( minus 97 percent y/y), as indicated by data from Russia's statistics agency Rosstat. 

"Their production fell from 112,000 to less than 4,000 cars. Declines of several tens of percent also apply to the manufacture of household appliances, trucks, railroads or electronic parts," stated the analysts in the latest issue of PIE's Economic Weekly.

According to PIE, "the collapse of the automotive industry is the result of Russia's dependence on foreign technology." 

"Sanctions have curtailed the export of machinery and technology on which the Russian economy has depended for many years," PIE experts noted. 

They cited estimates by the Kiel Institute for the World Economy, which show that imports to the port of St. Petersburg have declined by 67 percent. In comparison, traffic at Vladivostok and Novorossiysk is 20-30 percent lower.

(PAP)