The main articles are:
Regional Gross Product
The international rating agency Moody's Investors Service estimated the decline in the Moscow economy at 4% at the end of 2020.
Small and medium-sized businesses in Moscow
Main article: Small and medium-sized businesses in Moscow
Moscow Fund for Industry and Entrepreneurship Support (IPPF)
Main article: Moscow Industry and Entrepreneurship Support Fund (IPPF)
Export
Industry
Electronics manufacturing
Main article: Electronics production in Moscow
Cosmetics and perfumery production
Main article: Production of cosmetics and perfumes in Moscow
Pharmaceutical Market
Main article: Pharmaceutical market in Moscow
Wealthy residents
2023: 35,200 people live in Moscow with a fortune of $1 million or more
The number of dollar millionaires living in Moscow has decreased by 44% over ten years, follows from the data of Henley & Partners. As always, for comparison, the most successful year in the economic history of the new Russia is chosen to demonstrate the most negative dynamics. The first place on the list by the number of millionaires is New York. In Moscow, according to Henley & Partners, 35,200 people live with a fortune of $1 million or more, in New York - 340,000 millionaires.
Unemployment in Moscow
Main article: Unemployment in Moscow
Employment of foreigners in Moscow
2023: Moscow has formed an effective system for administering labor patents
An effective system for administering labor patents has been formed in the capital, which provides a transparent and legal process for the employment and work of foreign citizens, on May 12, 2023, said Maria Vasilevskaya, deputy head of the Department of Economic Policy and Development of Moscow, which is part of the Complex of Economic Policy and Property and Land Relations. Read more here.
Construction in Moscow
Main article: Construction in Moscow
Real estate in Moscow
Main article: Real estate in Moscow
Tourism
Main article: Tourism in Moscow
Cafes and restaurants in Moscow
Main article: Moscow Restaurant Market
Trade
2023: Retail volume growth by 7% to RUB 6.6 trillion
In 2023, retail turnover in Moscow reached approximately 6.6 trillion rubles. This is 7.3% more in comparable prices, taking into account inflation compared to 2022. Such data were released on March 6, 2024 by the metropolitan government.
According to Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations, growth in retail trade in 2023 was ensured primarily due to the non-food sector. Its turnover increased in relation to 2022 by 16.7% in comparable prices and reached almost 3.3 trillion rubles.
 | Consumer activity in this segment [non-food] has recovered, large retailers have debugged the supply system, and the products of companies that have left the market are replaced by domestic brands and brands of friendly countries, says Efimov. |  |
At the same time, the turnover of food trade on an annualized basis has practically not changed: at the end of 2023, it exceeded 3.3 trillion rubles. The maximum monthly sales volume was recorded in December: the figure reached 763.3 billion rubles, which is a quarter more compared to the same month in 2022.
It is also said about the increase in occupancy of the capital's shopping centers. According to estimates by the Department of Economic Policy and Development of the city of Moscow, the flow density of visitors to the shopping center by the end of 2023 averaged 280 people per day per 1,000 square meters. This is 1.8% more compared to the end of 2022. The positive dynamics indicate a gradual recovery of the relevant trade segment after the decline provoked by the withdrawal of a number of foreign companies from the Russian market due to the current geopolitical situation. More and more domestically produced goods are on sale as part of the import substitution program.[1]
Investments
2023: Robot delivery and digital mentor: In which projects Moscow invested 114 million rubles
Since the beginning of 2023, 68 grants for testing innovations have been approved in Moscow. Their total amount amounted to 114 million rubles. Deputy Mayor of the capital Natalya Sergunina told about this on August 25, 2023.
One of the developments that is being tested at VDNKh is a new delivery robot called AI Kolobok. It is a self-propelled ball about 40 centimeters in diameter. The device moves, rotating 360 degrees. Kolobok will be able to deliver small parcels, documents and products.
Also in Moscow, by the end of August 2023, an innovative lamp for growing roses is being tested. The reflector in it, unlike standard lighting fixtures, is located inside, not outside, while part of the mirror flask is covered with silver spraying. This design provides the maximum reflectance. The use of this lamp is expected to increase yields by at least 10-15%.
A compact device for water purification "Kavitek-Aqua" in a trial mode was introduced into the water supply system in the Zelenograd Development Corporation.
In addition, a virtual reality chemical laboratory, a platform for conducting remote consultations with doctors and psychologists, a web service for automating the assessment of the cost of housing are being tested at city sites.
| | The program for innovators has already shown its relevance and effectiveness. In total, with the support of the city, developments from 16 industries will be tested at the capital's sites: culture, information technology, entrepreneurship, medicine and others, - said Natalya Sergunina at the end of August 2023. | |
It is noted that up to two million rubles are allocated for each technological solution that is being tested at enterprises, in technology parks and other metropolitan institutions.[2]
2022
21.2% of investments in fixed assets of Russia fell on Moscow
21.2% of investments in fixed assets of Russia in 2022 fell on Moscow, which is 3 percentage points more in comparison with 2021. Vladimir Efimov, deputy mayor of the capital for economic policy and property and land relations, spoke about this in mid-June 2023.
| | Moscow continues to confirm its high level of business activity and play a significant role in the development of the country's socio-economic well-being, he stressed. | |
According to the head of the Department of Investment and Industrial Policy of Moscow, Vladislav Ovchinsky, the volume of investments in fixed assets of Moscow in 2022 exceeded 5.9 trillion rubles, which is 2.2% more in comparable prices than a year earlier. At the same time, about 4.4 trillion rubles fell on large and medium-sized businesses, which allocated funds for the construction of non-residential buildings, landscaping, as well as the purchase of machinery and equipment.
For five years, from 2018 to 2022, Moscow's share in the total investment in fixed assets of Russia increased by 7.2 percentage points. As reported on the official website of the mayor of Moscow in June 2023, the city offers potential investors attractive conditions for the development of their business. Thus, a large sales market for products with high purchasing power has been created in the capital, as well as a large pool of support measures. It is noted that enterprises do not need to confirm compliance with the conditions for the provision of special statuses - all of them will be extended automatically. Industrial enterprises can take advantage of preferential land leases to implement large-scale investment projects.[3]
Investors invested 5.9 trillion rubles in the Moscow economy
Investors invested about 5.9 trillion rubles in the Moscow economy at the end of 2022, which is 2.2% more than a year ago. Metropolitan Mayor Sergei Sobyanin wrote about this in his Telegram channel on March 31, 2023.
According to him, the bulk of the money was invested by large and medium-sized businesses - about 4.4 trillion rubles. Entrepreneurs invested in the purchase of machinery and equipment, the construction of non-residential buildings, landscaping, etc.
The fact that the volume of investments showed an increase in 2022, despite sanctions pressure and economic uncertainty, Sobyanin linked, among other things, with the package of anti-crisis measures for business, which the Moscow government adopted in March 2022.
This includes, for example, subsidizing interest on loans taken to expand production, a preferential rate of 1 ruble per year for renting a site for large-scale investment projects and other programs.
Entrepreneurs concluded 13 such agreements for the year of existence of the benefit. In addition, the mayor of Moscow recalled that preferential investment loans are also provided to industrialists and investors who create non-residential facilities in the capital. The Moscow Fund for Industry and Entrepreneurship Support allocated 20 billion rubles for these programs.
As noted in the capital's mayor's office, in the current economic conditions, the Moscow Government has adopted a number of additional support measures that will allow companies to continue to maintain investment activity. Investors can take advantage of preferential land leases at a rate of one ruble per year: this is possible if the company draws up a site for the design and construction or reconstruction of industrial facilities.[4]
The venture capital market exceeded the pre-pandemic level
In 2022, 119 transactions worth $658 million were concluded in the Moscow venture financing market (VC), the Moscow Innovation Agency said in early March 2023. They noted that the volume of investments in comparison with 2021 decreased, but it exceeded the level that was before the COVID-19 coronavirus pandemic.
Experts explain the decline in 2022 "a return to a normal situation after the overheating of the venture capital market in 2021." Overheating, according to analysts, happened due to pent-up demand for technology, inflated estimates of technology companies and low interest rates. Also, the market volume was influenced by the sanctions imposed after the start of Russia's special operation in Ukraine.
In 2022, 67% of the total number of capital transactions came from pre-seed and seed investments. Investments were more often attracted by IT companies with B2B products, while the share of "newcomers" in the VC market increased. Business Angels participated in 44% of the deals. They accounted for more than half of the total and investment of pre-seed and seed rounds. Most private investors come from the corporate environment, including top management or division directors.
In 2022, companies more often than a year earlier attracted investments to refine the current product, which may be due to the need to quickly look for new opportunities in the new economic reality. So, many companies begin to work with new target audiences or enter new geographies, and for this it is necessary to adapt the functionality of the product.
In 2022, Moscow startups began to look more often at other regions of Russia as potential markets for business expansion. The share of those who plan to spend investments on domestic expansion doubled in 2022.
2021
Investors invested 24 trillion rubles in Moscow's housekeeper over 10 years
Over the past 10 years, the volume investments of fixed assets in the capital has increased 2.7 times. In total, during this period economy Moscow , 24 trillion rubles were invested in investors. This was announced on November 3, 2021, according DIPP of Moscow to the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov.
| | Moscow is one of the most investment-attractive megacities. From 2011 to 2020, investors' investments in fixed assets in the capital amounted to 24 trillion rubles. If we talk about the annual volume of investments, then over 10 years it has increased 2.7 times. In the next 5 years, due to the implementation of large infrastructure projects, we expect an even greater increase in entrepreneurial activity. The volume of investment in fixed assets in real terms should grow by more than a quarter. According to our forecasts, pharmaceuticals, medicine, chemical industry, instrumentation and microelectronics will become the leading industries for investments, "said Vladimir Efimov. | |
According to Vladimir Efimov, even in the difficult economic situation associated with the pandemic, coronavirus investors continued to invest in the city. So, according to, information Rosstat the investments of the capital's enterprises in 2020 amounted to 3.6 trillion rubles, exceeding the indicators of 2019.
| | Investment activity also increased significantly in the first half of 2021: investments in fixed assets for this period amounted to 1.4 trillion rubles, which in comparable prices is 20.9% higher than the same period in 2020 and 19.7% more than in the first half of the pre-pandemic 2019. In November 2021, the capital accounts for about 18% of the all-Russian volume of investments in fixed assets and about half of Russia's foreign direct investment, "explained Alexander Prokhorov, head of the Moscow Department of Investment and Industrial Policy. | |
In January-June 2021, the share of extrabudgetary investments in Moscow amounted to 77%. Most of the funds - 39.4% of the total - fell on machinery and equipment. 30.9% of funds were allocated for the construction of real estate (except for residential) and landscaping, 14.2% for the creation of intellectual property, and 13.4% for housing construction.
The Moscow Targeted Investment Program plays an important role in stimulating the development of capital enterprises and investment activity. Its volume for 2021-2023. exceeds 1.9 trillion rubles. The city directs these budgetary funds to the implementation of priority projects in transport, social sphere and improvement. For each ruble invested by the capital, there are more than 3 rubles of private funds.
The system of business support measures also has an impact on the formation of a favorable investment climate. The capital offers companies tax and financial preferences. Thus, the city assigns to enterprises the statuses of an industrial complex, a technopark, an anchor resident of a technopark, an investment priority project (IPP). The reduction in the regional tax burden for such companies is 17-25%.
| | As of November 2021, 129 Moscow companies are entitled to various benefits. Largely thanks to this support, investments in the metropolitan economy of existing enterprises with special statuses over the past five years have amounted to 99.5 billion rubles, more than 121.5 thousand people are employed in these companies. And new investment projects, which are provided with tax support, will bring 33.8 billion rubles to the Moscow economy, "said Artem Barashev, director of the City Investment Management Agency. | |
Investment rating Baa3 with a "stable" forecast
Moody's Investors Service experts at the end of January 2021 reported that they see no reason to reduce the investment level of the rating of the Russian capital - it is at the level of Baa3 with a "stable" forecast. Experts are counting on a dynamic recovery of the city's economy, despite a decrease in business activity due to the coronavirus pandemic.
2020
Investors invested 24 trillion rubles in the Moscow economy over 10 years
Investors invested 24 trillion rubles in the Moscow economy from 2011 to 2020. This was announced in early November 2021 by the deputy mayor of the city for economic policy and property and land relations Vladimir Efimov. According to him, investors' investments in fixed assets of the Russian capital over 10 years have grown 2.7 times.
| | In the next five years, due to the implementation of large infrastructure projects, we expect an even greater increase in entrepreneurial activity. The volume of investments in fixed assets in real terms should grow by more than a quarter, - said Efimov, whose words are quoted on the official website of the mayor of Moscow. | |
He added that pharmaceuticals, medicine, chemicals, instrumentation and microelectronics should become the leading industries for investment.
It is noted that investment activity To Moscow in remains high even during the coronavirus pandemic. COVID-19 According to the data, Rosstat the investments of the capital's enterprises in 2020 amounted to 3.6 trillion rubles, exceeding the indicators of 2019.
Moscow accounts for about 18% of the all-Russian volume of investments in fixed assets and about half of Russia's foreign direct investment, said Alexander Prokhorov, head of the Department of Investment and Industrial Policy.
The Moscow authorities say that the development of urban enterprises and investment activity is helped by a targeted investment program, the volume of which for 2021‒2023 years exceeds 1.9 trillion rubles. This money will be spent on the implementation of projects in the transport and social spheres, the field of improvement. For each ruble invested by the city, there are more than three rubles of private investment. In addition, Moscow offers companies tax and financial preferences.[5]
Investing 3 trillion rubles in the Moscow economy (+ 2 %)
In 2020, more than 3 trillion rubles were invested in the Moscow economy. There was an increase of 2% compared to 2019, despite the COVID-19 coronavirus pandemic, according to the portal of the mayor and the city government.[6]
The three-year investment program in the amount of 1.8 trillion rubles involves the creation of new social and road transport infrastructure facilities, the modernization of public transport rolling stock, and housing construction. Employment indicators will also recover and remain favorable in the current macroeconomic situation.
It is expected that Moscow's high investment in the development of urban infrastructure, as well as a diversified economy and stable consumer demand, should help improve the economic situation in the capital. Russia
History
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1967
Notes
- ↑ Retail turnover in the capital grew by 7.3 percent in 2023
- ↑ Delivery robot and digital mentor: what innovations are being tested in Moscow
- ↑ More than 20% of investments in fixed assets of Russia in 2022 fell on Moscow
- ↑ Investors invested almost 6 trillion rubles in the Moscow economy last year.
- ↑ Investors invested 24 trillion rubles in the Moscow economy over 10 years
- ↑ Moscow retained the investment level of the credit rating
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