Economic Trends/Outlook in Russia
Russia was hit hard by the international financial crisis and in 2009 reached a record recession since the fall of the Soviet block (-7.9%). The recovery in 2010 was strong (4% growth according to estimates), driven by fuel exports and domestic demand stimulated by the increase in salaries. Growth should continue to strengthen in 2011-2012.
Economic recovery justifies the end of exceptional measures to combat the crisis. The government’s priority, announced as part of a Five Year Plan, is to support the agricultural sector in order to achieve food self-sufficiency. In order to free itself of its dependency on hydrocarbons, a change of the economic model is imperative. Tax reductions have been planned for the next few years, in order to favor the diversification of the economy through investment while, regaining some balance. A stabilization fund has been set up to modernize infrastructures, the education and health systems, as well as agriculture. Cuts in public spending and a strengthening of the supervision of the banking system are also planned. The main threats to growth are linked to controlling inflation, which remains high and in the long term, to the drop in population.
The unemployment rate, which dropped in the recent years, has risen as an effect of the crisis and is now estimated at 7.5% for 2010. Disparities are still marked, particularly between big cities and rural areas. Despite the appearance in towns of a middle class, the poverty rate is still at 16%.
|GDP (billions USD)||1,222.33e||1,465.08e||1,894.47e||2,197.71e||2,403.03e|
|GDP (Constant Prices, Annual % Change)||-7.8e||4.0e||4.8e||4.5e||4.3e|
|GDP per Capita (USD)||8,614e||10,437e||13,543e||15,765e||17,296e|
|General Government Balance (in % of GDP)||-3.5||-1.8e||-0.6e||-1.3e||-1.7e|
|General Government Gross Debt (in % of GDP)||11.0||9.9e||8.5e||8.8e||9.5e|
|Inflation Rate (%)||11.7||6.9e||9.3e||8.0e||7.1e|
|Unemployment Rate (% of the Labor Force)||8.4||7.5e||7.3e||7.1e||7.0e|
|Current Account (billions USD)||47.51e||77.57e||80.34e||69.54e||-|
|Current Account (in % of GDP)||3.9e||5.1e||4.6e||3.5e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
Russia has a wealth of natural resources. It is the leading producer of natural gas and the second producer of oil in the world, as well as being one of the main producers and exporters of diamonds, nickel and platinum.
Despite its surface area, Russia has a relatively small amount of land suitable for agriculture because of unfavorable climatic conditions. The country nevertheless owns 10% of the global agricultural lands. The northern regions of the country concentrate mainly on livestock and the southern regions as well as western Siberia produce cereals.
Industry represents more than a third of Russia's GDP and employs up to 30% of the population. The country inherited most of the Soviet Union's industrial bases. The most well developed sectors are chemicals, metallurgy, mechanical construction and defense sectors.
The service sector employs more than 60% of the population and generates slightly under 60% of the GDP. After the 1998 financial crises, the banking sector has not yet undergone a complete restructuring. Given the size of the country, the transport, communications and also trade sectors are particularly significant.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||9.0||29.2||61.8|
|Value Added (in % of GDP)||4.7||32.8||62.5|
|Value Added (Annual % Change)||0.2||-10.8||-5.4|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Mostly unfree
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministère de l'Agriculture
Ministère du Développement économique et du Commerce
Ministère des Affaires étrangères
Ministère des Finances
- Statistical Office
- Central Bank
Russian Central Bank
- Stock Exchange
Russian Trading System
Moscow Interbank Currency Exchange
- Other Useful Resources
Council of the Federation
- Main Online Newspapers
St Petersburg Times
The Moscow Times
Expert (in Russian)
RIA-Novosti (in French)
Any Comments About This Content? Report It to Us.
Russia has been fast pulling itself out of the economic doldrums in 2009, ending last two years with 4.3% GDP growth.
Hong Kong Trade Development Council (HKTDC) on 30 Jul 2012 related to Economic Trends/Outlook in Russia
Russian Government and Russian private sector companies have recognised the need for updated manufacturing equipment and has made the updating of such equipment a priority.
UK Trade & Investment on 5 Feb 2013 related to Economic Trends/Outlook in Russia
Foreign companies planning expand their sales and developing new markets consider Russia as one of the most promising markets.
BASYA Group on 4 May 2016 related to Economic Trends/Outlook in Russia
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