Tatarstan’s industrial growth exceeds expectations
Goods and services in industry worth 5.7 trillion rubles were shipped in the republic in 2024
Tatarstan's industry, despite the sanctions and the high key interest rate, showed good results in 2024 — the industrial production index (IPI) reached 105%. At the end of last year, it was 103%, but the republican industry failed to surpass the results of 2022 — 106.5%. According to Rosstat, the industrial production index in Russia in 2024 was 104.6%. So the results of the republic turned out to be slightly better than the national average. Tatarstan is no longer in the worst positions in the Volga Federal District — lower than that of the republic, the IPI in the Nizhny Novgorod region (103.3%), and a drop in industrial production was recorded in the Orenburg Region (96.7%). How the industry will develop this year and whether further growth should be expected — in the material of the analytical service of Realnoe Vremya.
The industrial production index (IPI) in 2024 amounted to 105%, according to the materials of the Tatarstan Statistics Service. At the same time, the index of industrial production in manufacturing reached 109.7%. In the mining sector, there is still a drop in production (96.8%).
In 2024, 5.7 trillion rubles worth of industrial goods and services were shipped in Tatarstan: 4.1 trillion rubles in manufacturing and 1.3 trillion rubles in mining.
The main contribution to economic growth was made by the production of coke and petroleum products (1.2 trillion rubles), chemical products and substances (533 billion rubles) and the production of motor vehicles, trailers and semi-trailers (517 billion rubles). Tatarstan also demonstrates good turnover in the production of food products (340 billion rubles), rubber and plastic products (243 billion rubles), computers, electronic and optical products (130 billion rubles) and electrical equipment (108 billion rubles).
In the first half of 2024, Tatarstan's industry showed weaker indicators, and in May 2024, a drop in industrial production was recorded compared to the corresponding month last year. But since autumn, the situation has unexpectedly changed (despite the increase in the key rate), and in September Tatarstan's industry grew by 13.1% compared to the same period in 2023, in October by 14.1%, and in December by 12.5%. Together, this has significantly improved the performance for the year.
For comparison, in December 2024, an increase of 18.6% was recorded compared to November, and in December 2023, compared to November, it was significantly lower — 8.4%. Judging by the schedule, Tatarstan's industry grew by leaps and bounds from month to month.
Last year, the fastest growth was in the production of machinery and equipment not included in other groupings, the production of computers, electronic and optical products, and the production of other finished products.
Top 10 fastest growing industries in Tatarstan by the results of 2024
Sector | Industrial production index | |
1 | Manufacture of machinery and equipment not included in other groupings | 138 |
2 | Production of computers, electronic and optical products | 118.5 |
3 | Production of other finished products | 112 |
4 | Production of medicines and materials used for medical purposes | 109.8 |
5 | Metallurgical production | 108.8 |
6 | Furniture manufacturing | 108.4 |
7 | Production of rubber and plastic products | 107.4 |
8 | Production of coke and petroleum products | 106.6 |
9 | Production of paper and paper products | 106.5 |
10 | Food industry | 106 |
The production of clothing, textiles and wood processing has decreased. The production of other finished products has also fallen.
Top 5 industries of Tatarstan that showed a decline in 2024
Sector | Industrial production index | |
1 | Clothing manufacturing | 83.3 |
2 | Manufacture of textiles | 84.8 |
3 | Wood processing and manufacture of wood and cork products, except furniture | 92.5 |
4 | Mining | 96.8 |
5 | Production of finished metal products, except machinery and equipment | 98.5 |
According to Tatarstan Statistics
According to Rosstat, the industrial production index in the country in 2024 was 104.6% compared to 2023. The manufacturing industry production index in the country was 108.5%," said Dmitry Baranov, a leading expert at Finam Management Management Company.
The task of increasing revenues from the export of high-tech products will also affect the work of the industry, and will contribute to an increase in production both in quantity and in value. It will have an impact on the country's growth and availability of significant raw materials, technology development, and the creation of increasingly complex products. “A possible improvement in the economic situation in a number of industries in 2025 will also affect the industry and will increase the production of many goods," the analyst predicts.
According to Rosstat data, by the results of 2024, the Russian industry showed positive dynamics on average in the country, the industrial production index was 104.6% yoy, that is, higher than the dynamics of 2023 (104.3%) and 2022 (100.7%), said Dilyara Iskhakova, a leading analyst for regional and sovereign ratings agency Expert RA.
The index of industrial production in manufacturing industries in the country by the end of 2024 amounted to 108.5% yoy. Positive dynamics is observed in 69 regions of the country. In the country in general, positive dynamics was observed in most sectors of the manufacturing industry.
The most dynamic growth was demonstrated by the industries such as the production of finished metal products, except machinery and equipment (IPI — 135.7%), the production of computers, electronic and optical products (130.5%), the production of other vehicles and equipment (126.6%), the production of medicines and materials used for medical purposes (118.1%), as well as the production of motor vehicles, trailers and semi-trailers (117.1%).
“According to Expert RA forecasts, the pace of economic development is expected to slow down in 2025. GDP is projected to grow by 1.4% yoy in comparable prices, in 2024 it was 4.1%, including slower growth in industry. The main reasons, in our opinion, will be the shortage situation in the labour market, high inflation, as well as the tight monetary policy of the Bank of Russia," Iskhakova concluded.