Economy - overview: |
Russia ended 2008 with its 9th straight year of growth, averaging 6.5% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last five years, and real personal incomes have realized average increases over 12%. Russia has also improved its international financial position since the 1998 financial crisis, with its foreign debt declining from 90% of GDP to around 28%. Strong oil export earnings have allowed Russia to increase its foreign reserves from only $12 billion to some $120 billion at yearend 2004. These achievements, along with a renewed government effort to advance structural reforms, have raised business and investor confidence in Russia's economic prospects. Nevertheless, serious problems persist. Economic growth slowed down in the second half of 2004 and the Russian government forecasts growth of only 4.5% to 6.2% for 2005. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, and widespread lack of trust in institutions. In addition, a string of investigations launched against a major Russian oil company, culminating with the arrest of its CEO in the fall of 2003, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy. |
GDP (purchasing power
parity): |
$1.408 trillion (2004 est.) |
GDP - real growth rate: |
6.7% (2004 est.) |
GDP - per capita: |
purchasing power parity - $9,800 (2004 est.) |
GDP - composition by
sector: |
agriculture: 4.9% industry: 33.9% services: 61.2% (2004 est.) |
Labor force: |
71.83 million (2004 est.) |
Labor force - by occupation: |
agriculture 12.3%, industry 22.7%, services 65% (2002 est.) |
Unemployment rate: |
8.3% plus considerable underemployment (2004 est.) |
Population below poverty
line: |
25% (2003 est.) |
Household income or consumption
by percentage share: |
lowest 10%: 1.7% highest 10%: 38.7% (1998) |
Distribution of family
income - Gini index: |
39.9 (2001) |
Inflation rate (consumer
prices): |
11.5% (2004 est.) |
Investment (gross fixed): |
19.1% of GDP (2004 est.) |
Budget: |
revenues: $106.4 billion expenditures: $93.33 billion, including capital expenditures of NA (2004 est.) |
Public debt: |
28.2% of GDP (2004 est.) |
Agriculture - products: |
grain, sugar beets, sunflower seed, vegetables, fruits; beef, milk |
Industries: |
complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; defense industries including radar, missile production, and advanced electronic components, shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts |
Industrial production
growth rate: |
6.4% (2004 est.) |
Electricity - production: |
915 billion kWh (2003) |
Electricity - consumption: |
894.3 billion kWh (2003) |
Electricity - exports: |
20.7 billion kWh (2003) |
Electricity - imports: |
12.65 billion kWh (2002) |
Oil - production: |
8.42 million bbl/day (2003 est.) |
Oil - consumption: |
2.31 million bbl/day (2003 est.) |
Oil - exports: |
6.11 million bbl/day (2003) |
Oil - imports: |
NA |
Oil - proved reserves: |
69 billion bbl (2003 est.) |
Natural gas - production: |
578.6 billion cu m (2003 est.) |
Natural gas - consumption: |
405.8 billion cu m (2003 est.) |
Natural gas - exports: |
171 billion cu m (2003 est.) |
Natural gas - imports: |
32.7 billion cu m (2001 est.) |
Natural gas - proved
reserves: |
47 trillion cu m (2003) |
Current account balance: |
$46.04 billion (2004 est.) |
Exports: |
$162.5 billion (2004 est.) |
Exports - commodities: |
petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures |
Exports - partners: |
Netherlands 9.1%, Germany 8%, Ukraine 6.4%, Italy 6.2%, China 6%, US 5%, Switzerland 4.7%, Turkey 4.3% (2004) |
Imports: |
$92.91 billion (2004 est.) |
Imports - commodities: |
machinery and equipment, consumer goods, medicines, meat, sugar, semifinished metal products |
Imports - partners: |
Germany 15.3%, Ukraine 8.8%, China 6.9%, Japan 5.7%, Kazakhstan 5%, US 4.6%, Italy 4.6%, France 4.4% (2004) |
Reserves of foreign exchange
and gold: |
$124.5 billion (3 December 2004 e) |
Debt - external: |
$169.6 billion (2004 est.) |
Economic aid - recipient: |
in FY01 from US, $979 million (including $750 million in non-proliferation subsidies); in 2001 from EU, $200 million (2000 est.) |
Currency (code): |
Russian ruble (RUR) |
Exchange rates: |
Russian rubles per US dollar - 28.814 (2004), 30.692 (2003), 31.349 (2002), 29.169 (2001), 28.129 (2000) |
Fiscal year: |
calendar year |