The pace of growth in output at Russian industrial companies more than quadrupled in January from the slowest rate in 10 months in December as production of building materials and equipment surged.
Output rose an annual 8.4% from 1.9% in December, the Federal Statistics Service said in an e-mailed statement today. That's double the 4.2% median forecast of 10 economists surveyed by Bloomberg. A property boom in Russia is gathering momentum as the economy expands for a ninth year.
Investment in real estate grew more than 35-fold in the past five years and will continue to expand, said Michael Lange, a founding partner and chairman of Jones Lang LaSalle Inc.'s Russian office, on February 14.
Manufacturing output surged to an annual 17.3% from 2.7% a month earlier, led by production of concrete, bricks and linoleum and construction equipment such as cranes. The boom is benefiting international companies such as Chicago-based Jones Lang, the world's second-largest real estate broker.
It's also helping domestic developers including St. Petersburg-based Mirax Group, which is building Moscow's Federation Tower that will be the tallest building in Europe. Output of gas, electricity and water fell an annual 10.5%, today's report showed, after growing 4.3% a month earlier. Mining output grew an annual 4.2%, from 2.6% in December, the report showed.
Russia, the world's second-biggest oil producer, has benefited from an oil price boom that underpinned economic growth and helped swell its foreign currency reserves from $12 billion in 1998 to a record $309.5 billion. Oil prices reached a record 78.40 a barrel on July 14. Russia's economy grew 6.7% last year and the trade surplus grew 15% to $164.4 billion. (Bloomberg)