The economy of Arkhangelsk Oblast is facing hardship on a number of key economic parameters. However, in contrast to most of the other regions in Barents Russia, Arkhangelsk is experiencing a significant increase in its construction industry. According to figures from the Russian State Statistical Service, Rosstat, a total of 1832 new buildings were erected in the region in 2012, among which as many as 1557 were private houses and villas. In comparison, Murmansk Oblast in 2012 erected only 97 new buildings.
The positive construction trend can be observed along the Northern Dvina river bank where new houses are popping up in abundance, giving the Arkhangelsk city downtown a major facelift.
On a broader economic level, however, Arkhangelsk is increasingly struggling to keep its wheels going. According to regional authorities, tax revenues for 2013 will be an estimated 12 percent below plans, Dvinainfo.ru reports. Similarly, figures from Rosstat show that the regional population and enterprises only in the first half of 2013 increased their debts to the regional budget with 900 million rubles, a doubling compared to figures from 2012.
That situation is symptomatic also for a great number of other Russian regions. According to newspaper Kommersant, budget deficits are in abundance in in the Russian province with an accumulated minus of more than 200 billion rubles. At the same time, the federal government is cutting transfers, forcing a number of regions to acquire bank credits. According to the newspaper, the Russian regions have over the last three years boosted their total debts from 889 billion rubles to 1,37 trillion rubles.
At the same time, industrial production is shrinking in a lion`s share of the regions. In Arkhangelsk, the industry in 2011 experienced a decline of 6,9 percent and then a 4,2 percent decline in 2012.
Also on the level of people`s incomes, the figures illustrate a regional economy in stagnation. According to Rosstat, the income growth of the Arkhangelsk households in 2011 dropped compared with the previous years and amounted to only 0,5 percent year-on-year.
