- Russian industrial production fell 5% in April from the prior month, according to the economy ministry.
- That comes amid a historic labor shortage, and the unemployment rate hit a record low of 3.3%.
- Russia’s war on Ukraine has set off a mass exodus of workers and the mobilization of 300,000 troops.
Official Russian statistics released on Wednesday highlight constrained economic performance, as industrial production fell sharply.
Some analysts have previously warned against putting much faith in the Kremlin’s data, which is often used to portray Russian economy in a more positive light.
But the economy ministry said industrial output dropped 5% in April from the prior month, according to Reuters. That’s despite state spending and demand for military production.
The drop coincides with a historic labor shortage that’s weighing on factories. According to a central bank survey last month, Russia’s economy is facing a record worker shortage amid losses in its war on Ukraine and a mass exodus.
About 1 million people have left Russia, whether to avoid a mobilization decree from October or to find better economic opportunities.
On Wednesday, the economy ministry backed up the earlier findings, saying Russia’s unemployment rate dropped to a record low of 3.3%.
Meanwhile, retail sales in April dipped 0.1% from the prior month, signaling weakness in consumer demand. Monthly GDP growth also slowed to 0.2% in April after accounting for seasonal adjustments.
First-quarter corporate profits fell 22.3% year over year, while capital investments dropped to 0.7% from last year’s 13.8%.