Moscow 18.08.2019 08:32

Russian Federation

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy.
Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors.
The protection of property rights is still weak and the private sector remains subject to heavy state interference.
Russian industry is primarily split between globally-competitive commodity producers.
In 2011, Russia became the world’s leading oil producer, surpassing Saudi Arabia; Russia is the second-largest producer of natural gas; Russia holds the world’s largest natural gas reserves, the second-largest coal reserves, and the eighth-largest crude oil reserves. Russia is the third-largest exporter of both steel and primary aluminum. Other less competitive heavy industries remain dependent on the Russian domestic market.
Economic Facts – Russia 2012
Population 142.263.000
GPD – real growth rate (2011) 4,3%
GPD – real growth rate (2010) 4,3%
GPD – real growth rate (2009) -7,8%
GPD per capita $16,690  12.840 €
Unemployment rate (Russia) 6,6%
Unemployment rate (Moscow) 1,1%
Budget (2011 Revenues) $382.8 billion 294,4 billion €
Budget (2011 Expenses) $376.1 billion 289,2 billion €
Inflation rate 2011 8,9%
Inflation rate 2010 6,9%
Reserves of foreign exchange & gold $513 billion 395,1 billion €
Russia’s reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the highly volatile swings in global commodity prices.
The government since 2007 has embarked on an ambitious program to reduce this dependency and build up the country’s high technology sectors, but with few results so far.
The economy had averaged 7% growth in the decade following the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class.
The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up.
According to the World Bank the government’s anti-crisis package in 2008-09 amounted to roughly 6.7% of GDP. The Central Bank of Russia spent one-third of its $600 billion international reserves, the world’s third largest, in late 2008 to slow the devaluation of the ruble. The government also devoted $200 billion in a rescue plan to increase liquidity in the banking sector and aid Russian firms unable to roll over large foreign debts coming due.
The economic decline bottomed out in mid-2009 and the economy began to grow in the third quarter of 2009. High oil prices buoyed Russian growth in 2011 and helped Russia reduce the budget deficit inherited from the lean years of 2008-09. Russia has reduced unemployment since 2009 and has made progress on reducing inflation since 2010. Russia’s long-term challenges include a high level of corruption, difficulty in accessing capital for smaller, non-energy companies, and poor infrastructure in need of large investments.