Price pressures remained elevated, supply chain disruption continued and the war in Ukraine added to difficulties. Exports softened for first time in three months.
The seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) posted 48.2 in April, up from 44.1 in March, to signal the third successive deterioration in the health of the Russian manufacturing sector.
New orders decreased for fifth successive month due to price hikes and lack of customers. Rate of decline eased significantly from previous month, however, as some firms able to secure new business.
The sharp increase in the inflation rate came on the back of food prices growing 12.7% y/y.
Capital Economics predicts GDP will contract by 0.4% q/q in 2Q22 and stagnate for the remainder of the year, as industry struggles with supply problems.
Growth decelerated across all three main industrial sectors.
The board of the Central Bank of Russia cut the key monetary policy interest rate from 17% to 14% at the policy meeting of April 29 – the second cut in a month as inflationary pressure rapidly recedes.
Polish consumption resilient in spite of rampant inflation.
A drop in unemployment has been posted in every region of Slovakia, even in districts that used to record high unemployment rates.
Growth in the index was driven by expensive energy commodities and industrial metals, as well as by the weak zloty – all the effects of the war in Ukraine.
The producer price index started to increase rapidly at the beginning of 2021.
The International Monetary Fund estimates that Russia’s economy will shrink by 8.5% this year and Ukraine’s could collapse by 35% as a result of the war between the two that broke out at the end of February.
Major effects on Moldova’s industrial activity came from the disruption of global production chains, mainly in the automotive industry.
Inflation hits 10.4% in March, driven by growth in prices of food, fuels and energy.
Government considers cutting taxes on bread, fruit and vegetables after high energy prices and the war in Ukraine pushed up inflation.
Georgia’s revenue from tourism reached $174.5mn in March, 71.3% of the figure recorded in March 2019.
Analysts expect inflation rise of 1.5 percentage points to lead to further rate rises.
Deaths outnumbered births in 2021, while emigration revived as international travel restrictions were lifted.
In absolute terms, the cost of gas imports more than quadrupled to $229mn.
Ukraine’s economy will contract by 35% this year as a result of the war with Russia, the Institute of International Finance (IIF) said in a note released on April 13.