In February 2024, statistical data from the Main Directorate of the Central Federal District of the Central Bank indicate that economic activity in January 2024 and December 2023 remained at elevated levels. This assessment reflects robust performance across consumer demand, production, and logistics within the Central Federal District and neighboring regions.
Markets are expanding as more sellers join online platforms and consumer interest in e commerce continues to rise. Projections show that in 2024 about 1.9 million square meters of warehouse space are slated to come online in the capital region, compared with 1.8 million square meters added in 2023. The bulk of these facilities involves large-scale warehouses and distribution hubs, with agreements already in place with marketplaces, multi channel retailers, and online retailers. This expansion signals growing capacity to support digital commerce and cross regional trade flows.
Logistics infrastructure is actively developing across six regions of the Central Federal District. Four major regions are driving the construction of distribution centers, with Tambov and Tula identified as the largest centers for new projects. These developments aim to improve supply chain resilience, shorten delivery times, and enhance regional economic integration as demand for goods and services remains resilient.
Production in the consumer sector, including food and apparel, continued to grow in Central Russia. Demand for production equipment, transport and construction materials remained strong, helping sustain electronics and computer equipment output in the Northwest and Ural regions. Metalworking goods showed strength in Central Russia and the South, while orders for transport construction rose in Siberia and shipbuilding activity advanced in the Far East. The Volga Vyatka automotive cluster began the year with increased output, addressing component supply challenges through adaptive procurement and production adjustments. In addition, levels of individual residential construction rose in a broad range of regions, contributing to overall regional growth momentum.
Industry observers note that average consumer activity across regions at the start of 2024 stayed near the heightened levels seen in preceding months, supported by steady wage growth. The uptick in tourist flows has also boosted demand for food and beverage services, hotels, transportation, communications, and cultural activities. This combination of sustained consumer spending and targeted investment in logistics and manufacturing underpins ongoing regional expansion.
In December 2023 coverage, outlets reporting on January 2024 trends highlighted a moderation in the growth rate of consumer activity among Russians. While consumer prices continued to rise, markets for goods and services remained brisk, with ongoing demand fueling price momentum. Analysts point to a persistent risk of inflationary pressure amid resilient consumption and supply chain dynamics.
In a related note, Andrei Belousov, a prominent former First Deputy Prime Minister, identified a key risk facing the national economy in subsequent discussions. His assessment underscores the need for continued policy attention to macroeconomic stability and structural reforms as the country navigates ongoing domestic and international developments.