Victim of inflation and expensive loans

Rules igry22-07-2008 Victim of inflation and expensive loans to Russian industrial enterprises are losing competitiveness. Due to cost-push inflation, strengthening the national currency, rising in price of credits and lack of resources for modernization of production slowed down the pace of industrial growth. Production efficiency demonstrates all the lower levels. According to the Industry and Trade Ministry, Russia's industrial enterprises all with great difficulty, manages to keep an acceptable level of competitiveness. Going slower growth in selected industries, primarily due to cost inflation, increasing the national currency, the rising price of credit and thus a lack of resources for the modernization of production necessary to improve performance of production (labor productivity, energy consumption, material consumption). In I half of 2008, production dynamics decreased compared with the I half of 2007, the official website of Industry and Trade Ministry. Industrial production growth rate amounted to 105.8% versus 107.1% in I half of 2007. This reduces the growth dynamics showed manufacturing activity - 108,4% against 111,4% and mining 100.5% versus 103%.