Industrial production

Value for the economy

As economist Danios Rodrik noted in 2017, industrial production has some specific features that make it the most important driver of economic development.

Firstly, industrial production is a technologically dynamic sector. A feature of the industrial sector is the convergence of labor productivity, regardless of any barriers (politics, business climate, etc.). The same state of the art automobile plant will be almost equally productive in the United States and Zimbabwe.

Secondly, industrial production has traditionally absorbed a significant share of unskilled labor, unlike other high-performance sectors, such as the financial sector or mining. As John Rockefeller said, "the best business in the world is a well-run oil company. In second place is a poorly managed oil company. " The problem is that you will not create many jobs in this sector, only for your own.

Thirdly, industrial production is a traded sector, its products can be exported, which removes restrictions on demand in poor countries. What cannot be said about the service sector, which is mainly non-tradable and stubborn in the absence of solvent demand in developing countries: you cannot open many coffee shops, barbershops and boutiques in Zimbabwe. Industry, on the other hand, can develop and absorb labor, even if the rest of the economy remains technologically primitive. And pull the latter by the ears^[1].

Industrial production in Russia

Main article: Industrial production in Russia

Industrial production in Belarus

Main article: Industrial production in Belarus

Segments

• Pulp and Paper Industry

Chronicle

2024: Russia enters the top five countries of the world in the contribution of the industrial sector to the economy

Russia ranked fifth among all countries in the world in terms of the contribution of the industrial sector to the national economy, showing the greatest growth among the dozens of major economies. Russian industry increased its contribution to GDP by 6% to $668 billion, which allowed the country to enter the top 5 global rating. This is evidenced by an analysis of World Bank data conducted in July 2025.

According to RIA Novosti, China retains its leading position in the ranking, where the contribution of the industrial industry to gross domestic product increased by almost 2% in nominal terms and amounted to $6.8 trillion. The second place was taken by the United States of America with the growth of the industrial sector by 3% to $5.1 trillion.

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Фото: Freepik

The top three was closed by Germany, which became one of the few large economies where the indicator of the contribution of industry immediately decreased by 2.5% to $1.2 trillion. The fourth place went to India, which increased output in the production sector by 4% to $957 billion.

Russian industry has demonstrated the fastest growth among dozens of the world's leading economies, increasing its contribution to GDP by 6 percentage points. Such dynamics allowed Russia to strengthen its position in the global industrial ranking and bypass a number of developed countries.

The sixth place in the ranking was taken by the UK, where the figure rose to $610 billion with an increase of 3.5%. The seventh position was taken by Mexico, whose industrial production reached $586 billion. The British economy continues to show steady growth in the industrial sector despite external challenges.

In the last three countries from the top 10, the contribution of industry to the economy has shown negative dynamics. In France, the industrial sector fell by 2% to $554.9 billion, in Saudi Arabia the decline was 4% to $554.8 billion, in Indonesia the figure decreased by 0.4% to $549 billion.^[2]

Notes