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2019/07/14 09:59:45

Economy of Russia

Statistics in this article is constantly updated. Add the page to favorites that always on the basis of the facts to understand as the economy of Russia develops.

Content

Up-to-date data in recent years are provided in this article. Process of economy of Russia earlier in article the Economic history of Russia.

Key indicators

GDP loudspeaker

Main article: GDP of Russia

Correlation of GDP of Russia and prices of oil
Correlation of GDP of Russia and prices of oil

The number of the companies in Russia

Main article: The number of the companies in Russia

The largest entrepreneurs and managing directors of state assets

Business community of Russia for December, 2018
Business community of Russia for December, 2018

Branches of the economy

Industry structure of 500 largest companies of Russia at the end of 2014.

The card of property of 500 largest companies of Russia at the end of 2014 is given below.

Industrial production

Main article: Industrial production in Russia

Dynamics of industrial production in Russia 2005-2015, %

Industries

Extraction of silver

Data for 2018.
Data for 2018.

Trade

Pharmaceutics

Main article: Pharmaceutical market of Russia

Digital economy

Main article: Digital economy of Russia

Mobile economy

Main article: Mobile economy of Russia

Small business

Main article: Small business of Russia

Investments

2019

Plan of improvement of the investment climate for 12 directions

On January 17, 2018 the Government of the Russian Federation approved the plan under the name "Transformation of Business Climate". The plan is directed to improvement of the investment climate in 12 directions [1] (in more detail).

2017

Investment volume into fixed capital grew by 4.4%

At the end of 2017 the investment volume into fixed capital grew by 4.4% in annual terms. In general, commenting on growth of investments into fixed assets, it is possible to speak not only about growth, but also about structural adjustment of the investments. It is necessary to consider that the considerable share of internal investments was provided earlier by the enterprises of an oil and gas sector which were forced to contract or freeze a part of projects in connection with deterioration in an economic and political environment. At the same time in 2017 growth petrogas of the sector was recovered in parallel with growth of investments into the import-substituting industries and in general to the non-oil sector.

Surge in investments into bonds

Only for the last week of January, 2017 of EU country invested 140 million dollars of the investment capital in the Russian bonds. It became a peculiar record in three years — practically for the entire period of the beginning of sanctions and countersanctions. It is remarkable that since the end of 2016 the economy of the Russian Federation received about 700 million dollars of foreign injections.

Recently strong indications of "thaw" in respect of the investment climate in Russia are noticeable. Among the reasons of it experts call increase in prices for oil and some perspectives of improvement of the Russian-American relationship designated later Donald Trump's elections as the U.S. President. Besides, in the European Union voices of discontent with sanctions measures against the Russian Federation sound more actively. According to numerous forecasts, positive trends will remain. It can be also promoted by decrease of the inflation rate and gradual reduction of a rate by the Central Bank.

2013: The first half of the year of +32%

Inflow of the foreign investments to economy of the Russian Federation in the first half of the year 2013 grew by 32.1% in comparison with the same period of last year, including straight lines — for 59.8% (Rosstat).

At this balance of investments (minus investments abroad) it developed investments into Russia negative — 27.6 billion dollars.

Receipt of the foreign investments to Russia made 98.795 billion dollars, of them the direct foreign investments — 12.139 billion dollars (12.3% of the total amount of receipts). The Russian investments abroad in the first half of the year grew by 1.8 times, having reached 126.4 billion dollars.

"As of the end of June, 2013 the saved-up foreign capital in economy of Russia was 370.6 billion US dollars that is 10.7% more in comparison with the corresponding period of previous year", said in materials of Rosstat.

The largest specific weight in the saved-up foreign capital fell on the other investments performed on a returnable basis — 66.9% (for the end of June, 2012 — 59.0%), the share of direct investments made 31.2% (38.5%), portfolio — 1.9% (2.5%)[1].

2012:-14.4% for the first 9 months

The volume of the foreign investments which came to Russia for the first nine months 2012 was 114.5 billion dollars that is 14.4 percent less, than for the same period the previous year. It is reported in materials of Rosstat.

At the same time the volume of the extinguished investments, i.e. that which at first came to the country, and were displaid then, was 99.7 billion dollars. Thus, the volume of net investments in the Russian economy in nine months was 14.8 billion dollars.

Leaders in investment into the Russian Federation appeared:

  • Holland (15.7 billion dollars),
  • Cyprus (11.8 billion dollars) and
  • Great Britain (10.6 billion dollars).

In general as of the end of September, 2012 the saved-up foreign capital in the Russian economy grew by 9.3 percent to 353.3 billion dollars.

The Russian investments abroad, on the contrary, grew: in January-September from the Russian Federation 109.4 billion rubles abroad are directed, the extinguished investments made 101.3 billion dollars of them. Both the directed, and extinguished investments grew on average by 13 percent. The volume of the investments which are saved up abroad for the end of September, 2012 was 119.2 billion dollars of Russia. Leaders in attraction of the Russian investments are:

  • Switzerland (38.6 billion dollars),
  • Austria (14.5 billion dollars) and
  • Cyprus (10.8 billion dollars).

  • In October, 2012 speaking at the investment forum "Russia Calls!", the president Vladimir Putin said that by 2015 the investment volume into the Russian economy should grow to 25 percent of GDP, and by 2018 - to 27 percent of GDP. For comparison, at the end of 2011 the investment volume into the Russian Federation, according to Rosstat, exceeded 190 billion dollars (5.7 trillion rubles at the rate of for the beginning of 2012). Considering that GDP of the country was 54.369 trillion rubles, investments not much more exceeded 9.5 percent of GDP.

  • In July, 2012 in the report of the United Nations Conference on Trade and Development (United Nations Conference on Trade and Development, UNCTAD) increase in investment volume into the Russian economy and also increase in its attractiveness for the foreign companies is noted. Experts of UNCTAD state close to record growth of investment flows to Russia.

On survey results of UNCTAD, Russia divided with Germany the eighth place in the list of the states where global corporations in 2012-2014[2]are going to invest ].

Image:В какие страны планируют инвестировать иностранные корпорации 2011.JPG
  • In October, 2011 in Ernst & Young expected increase in inflow of investments in Russia, despite many concerns, connected with weakening of world economy in general. Within the last six months inflow of investments restrained the political instability which followed the solution of the president Medvedev to dismiss a number of key officials. However, considering the elections which are coming in December, 2011, the situation should be stabilized, and growth of investments in 2012 should be 9% in comparison with 2.3% in 2011.

Image:Наиболее привлекательные регионы для открытия бизнеса Ernst and Young 2011.png

Foreign trade

Financial system

Balance of payments of Russia

The balance of payments of the country - a ratio of the money payments coming to the country from abroad with payments abroad during certain time (year, quarter, month).

The difference between income and an expense of the country makes balance of the balance of payments. The balance can be positive or negative. In the latter case there is a deficit of the balance of payments, i.e. the country spends abroad more, than receives from the outside. It can have an adverse effect on rate stability of national currency.

In balance select two sections (account): account (balance) of current transactions and account (balance) of capital movement.

The account of current transactions includes:

  • 1) a trading balance (cumulative payments to the country / from the country on export and commodity import);
  • 2) balance of services (trade in services, payment of foreign transportations, tourism, sale and purchase of patents and licenses, international insurance);
  • 3) balance of transfers (money transfers, a property income abroad (percent, dividends, profit), interest payment on foreign loans and the credits, free aid).

The balance on the account of current transactions represents an export indicator from the country (NE). The balance is positive if export exceeds import.

2015: Positive balance of $65.8 billion (+12.7%)

In 2015 the positive account balance of current transactions of the balance of payments of Russia made $65.8 billion that is 12.7% more, than in 2014 ($58.4 billion), the Bank of Russia reports.

"The growing surplus of the current account became result of significant reduction of a negative deposit of balance of services and investment revenues, including due to reduction of payments on service of an external debt in the conditions of decrease in total amount of debt to nonresidents", - the Central Bank notes.

At the same time the surplus of the account of current transactions grew in the IV quarter 2015 by 73.3% to $13.0 billion against $7.5 billion in the III quarter.

Meanwhile the negative balance of the financial account (without reserve assets) was reduced in 2015 more than twice to $61.1 billion against $130.2 billion in 2014. In the IV quarter 2015 the indicator was $3.1 billion against $2.4 billion in the III quarter.

National currency

2019: The ruble is underestimated for 65%

In July, 2019 the Economist magazine published the index of Big Mac. Proceeding from the sandwich price in the different countries of the world and currency rate authors of a research found out fair value of U.S. dollar.

According to a research it turns out that currency rate of ruble is 64.5% higher than the actual cost of the Russian currency. It is more than at the Ukrainian hryvnia, Romanian leu, the South African rand and Malaysian ringgit.

Authors specify that if in the USA Big Mac costs $5.74, then in Russia – 130 rub or is slightly more than $2.

2013: Devaluation acceleration

Since the end of 2012 on August, 2013 the ruble lost about 9% to an equilibrium basket from dollar and euro, conceding only to the South African rand (easing for 22%), to Brazilian real (-20%), Indian rupee (-18%) and Turkish lira (-12%).

But for all post-crisis period (since the end of 2009 on August, 2013) the ruble sank only for 5% against decline by 35-36% of the South African rand and Brazilian real, by 33% - Indian rupee, for 27% - Turkish lira and for 6-14% - currencies of CEE. So correction of ruble in 2013 only compensates its stability[3] before[3].

Federal budget

Основная статья: Budget of Russia

International (gold and exchange) reserves

Main article: International (gold and exchange) reserves of Russia

The international reserves represent the highly liquid financial assets which are at the disposal of the Bank of Russia and Government of the Russian Federation. They consist of assets in foreign currency, monetary gold, special drawing rights (SDR, special drawing rights, - the settlement monetary unit used by the International Monetary Fund, the IMF), a reserve position in the IMF and other reserve assets.

Inflow/capital outflow

Main article: Inflow and capital outflow from Russia

According to the Bank of Russia, the capital outflow during the period from 1994 to 2016 made nearly $675 billion[4] of the country[4].

Key interest rate of the Central Bank

Main article: Central Bank of Russia

Image:Ключевая ставка ЦБ России 2005-2015.jpg

Debt

External debt of Russia

External debt about $850 billion

For April, 2019 almost all external debt of Russia – a corporate debt. And the state prefers to borrow money within the country. An internal debt on federal loan bond – about 200 bln. dollars, are 4 times more than external. But also having put all debts of the state, we will receive modest 10-15% of GDP.

The total debt of the corporate sector is more – about 600 bln. dollars, 30-40% of GDP. Total all debts we will amount about $850 billion, or near in 50% of GDP. The main part of a debt is covered with savings, in particular, the international reserves which size reached $491 billion. Thus Russia remains not loaded with debt and financially steady economy.

Russia paid off the last external debt of the USSR

The Russian Federation paid off on August 8, 2017 the external debt to Bosnia and Herzegovina which became the last settled obligation of the USSR to the foreign creditor state, the Ministry of Finance of the Russian Federation reports.

In the message it is noted that debt to Bosnia and Herzegovina in the amount 125.2 million dollars USA is settled by the agreement between the Government of the Russian Federation and Council of Ministers of Bosnia and Herzegovina on settlement of obligations of the former USSR on the calculations connected with a goods turnover between the former USSR and the former SFRYu signed in To Moscow March 21, 2017 and which became effective on July 20, 2017.

In the message it is noted that regarding the public external debt of the Russian Federation to official bilateral creditors there is outstanding only debt to the Republic of Korea in the amount 594.3 million dollars now.

"According to the existing bilateral intergovernmental agreement the specified remaining balance of obligations is subject to repayment during the period until the end of 2025" — notes the ministry.


«Мир в цифрах»: У каких стран растет внешний долг

$513.478 billion

According to the Central Bank of the Russian Federation, the external debt of Russia made by January 1, 2017 $513.478 billion against $519.101 billion by January 1, 2016. Thus, the debt was reduced in 2016 by $5.623 billion (-1.1%).

"Since the second half of 2014 the external debt of Russia is paid off in high gear. Until recently the external debt, according to the Central Bank, made $720 billion, for July 1, 2015 - $550 billion, for October 1, 2015 we will see the digit close to $500 billion", - the Deputy Minister of Finance Maxim Oreshkin said in September, 2015[5].

Directly public debt of Russia is lower, than other large economies — and in absolute values, and in the relation to GDP. However feature of Russia that it has a large number of state companies whose debts are very big not only in comparison with their revenue, but also in relation to all GDP.

For the beginning of 2015 according to the Central Bank, the external national debt of Russia in expanded determination (the debt of the state together with the debt of state companies so is called) makes more than $377 billion[6]. It became more difficult give this money to the state and state companies in 2014 because of devaluation of ruble, and to be refinanced — because of sanctions from the USA and the EU. Thus, risks of a default of the state or state companies increased at this time. The additional threat in itself was posed by decrease in GDP in dollar expression because of what national debt level in the relation to the sizes of economy increases.

Nevertheless, and you should not exaggerate this threat — the largest state companies, Gazprom and Rosneft, even in the conditions of drop in oil prices, have a permanent currency earnings, and Russia has a positive trading balance and essential reserves.

National debt

National debt relation to GDP

Russia since 2009 began to increase gradually a national debt because of lack of funds after crisis. The government made the decision to borrow money both on internal, and in foreign market.

In 2011 the public debt of Russia made 11.2 percent of GDP.

In April, 2012 national debt volume percentage of GDP of the country was estimated approximately at ten percent. Then Vladimir Putin holding at that time the prime minister's post said that the national debt of Russia in the next three years should not exceed 15 percent of GDP.

The Ministry of Finance in October, 2012 predicted that by the end 2012 the public debt of Russia will grow up to 14.1 percent of GDP.

At the end of 2016 the national debt of the USA made 106% of GDP of the country - it is the third indicator among the countries of "Group of Twenty". First place is won by Japan which national debt makes 9.1 trillion dollars, but by two and a half times exceeds GDP of the country.

The national debt of Russia, according to the Ministry of Finance, by the end of 2017 will reach 12.7 trillion rubles that will make 13.8% of GDP of the country[7].

Scanty national debt per capita
For the end of 2018
For the end of 2018
Internal national debt

For January 1, 2012 the internal national debt of Russia reached 3.546 trillion rubles[8].

The public internal debt of Russia for November 1, 2012 made 3.931 trillion rubles, reported in official materials of the Ministry of Finance. Since the beginning of 2012 the volume of a national debt grew by 384 billion rubles, or for 10.8 percent.

External national debt: $55.7 billion

During 2011 the volume of the public external debt of Russia decreased by 10.4 percent if to consider in dollar expression, and for 8.4 percent in euro.

For January 1, 2012 the size of an external national debt was 35.8 billion dollars (27.7 billion euros).

For October 1, 2012, according to the Ministry of Finance, the external national debt of Russia made 40.545 billion in dollar expression (or 31.355 billion if to consider in euro).

For September, 2013 the external national debt of Russia grew by 12.6 percent and reached a point of 55.78 billion dollars. As stated in official materials of the Ministry of Finance, generally growth is connected with increase in debt on bonds up to 40.65 billion dollars.

For September debts on bonds grew by 18.3 percent at once. Most of all — for 15 billion dollars — at Russia of bonds with repayment in 2030. For 2014 repayments it is not planned, and in the 2015th Russia should give to creditors two billion dollars.

Before the Paris Club of creditors the debt of Russia is only 185 million dollars, before the former countries of Comecon — there are slightly more than 960 million dollars. On state guarantees in foreign currency debts increased to 11.3 billion dollars.

According to the Central Bank of the Russian Federation, the external national debt of Russia in expanded determination (the debt of the state together with the debt of state companies so is called) makes more than $377 billion[9] (Date of the last update: On February 4, 2015).

Debts of subjects of Russia

Main article: Debts of subjects of Russia

The consolidated budget of territorial subjects of the federation represents the integrated budget of all regions and municipalities entering these regions without interbudget transfers. The deficit of the konslidirovanny budget of regions is covered generally at the expense of the federal budget.

Money supply

The amount of money supply in the address (Sq.m) in Russia, billion rubles. Given on the middle of 2019.
The amount of money supply in the address (Sq.m) in Russia, billion rubles. Given on the middle of 2019.

Accumulation of money can serve as the reason of increase in currency circulation. Because of it it is necessary to release more means of payment. Increase in money supply in the Russian economy is one of the main factors of inflation in Russia.

Inflation

2015

2013: 6.5%

Inflation in 2013, according to preliminary estimates Rosstat, was 6.5 percent. On December 31 it is reported on the website of the department. Data are obtained on the basis of price analysis on 64 types of the main goods and services in 271 Russian cities.

Credit ratings

The S&P agency began to rank the Russian Federation in 1996 at the request of the state. The Russian government pays rating services S&P and can refuse them at any time. How many Russia pays for services S&P, it is precisely unknown.

At S&P there are also sovereign rankings which the agency maintains voluntarily, without receiving money from the issuer (unsolicited ratings). Free sovereign ratings minority: on a "non-commercial" basis, for example, the ratings of the United States, Great Britain, Germany, France, Japan are conducted.

Since 2004 all three main rating agencies (S&P, Moody's and Fitch) maintain the sovereign rating of Russia within so-called investment category.

At the beginning of 2014 economists of Heidelberg University in Germany Andreas Fues and Kaj Goering in the academic research made a hypothesis that rating agencies are not objective similarly to all sovereign borrowers: they are more favorable to the countries of the basing (for S&P it is the United States). In reply S&P said that it does not agree with the statement of scientists.

Investors are not inclined to attach great value to actions of rating agencies, Bloomberg claims. The analysis of rating actions of Moody's and S&P from 1970th and the documented market reaction on each of these actions shows that approximately in half of cases of quotation of government bonds changed not in that direction which was dictated by logic of rating action. A classical example - historical lowering the U.S. credit rating in August, 2011 by the S&P agency: then investors did not begin to reset the American state papers, on the contrary, their price grew, and profitability decreased to record values.

Banking system

Private investments

Crediting

Insurance market

Main article: Insurance (market of Russia)

Labor market

At the beginning of the 2010th the World Bank allowed three scenarios of reduction of the population of Russia of working-age.

Image:Население России трудоспособного возраста 1991-2030 (прогноз 2014 Всемирный банк).PNG

Several separate articles are devoted to labor market on TAdviser:

Consumption in Russia

Positions of Russia in ratings

Participation in the international organizations

WTO

The protocol on the entry of Russia into the World Trade Organization was signed on December 16, 2011. The country was included into trade club after 18 years of negotiations. In more detail about agreements of Russia with the WTO read in article the World Trade Organization (WTO).

Economic cooperation with other countries

Notes