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flag Russia Russia: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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%.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 1,221.991,479.83e1,884.902,117.252,342.14
GDP (Constant Prices, Annual % Change) -7.84.04.34.14.1
GDP per Capita (USD) 8,54510,356e13,236e14,91816,559
General Government Balance (in % of GDP) -3.4-1.8e-0.3-1.8-2.2
General Government Gross Debt (in % of GDP) 11.011.7e11.7e12.112.6
Inflation Rate (%) 11.76.98.97.36.9
Unemployment Rate (% of the Labor Force) 8.47.57.37.17.0
Current Account (billions USD) 49.5271.13e104.0073.3651.66
Current Account (in % of GDP) 4.14.85.5e2.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

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) 9.7 27.9 62.3
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.

 
 
Monetary Indicators 20062007200820092010
Russian Rouble (RUB) - Average Annual Exchange Rate For 1 USD 27.1925.5824.8531.7430.37

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Russia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
50.5/100
Position:
Mostly unfree
World Rank:
139/179
Regional Rank:
40/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The country is fairly open to foreign trade (which represents around 50% of the GDP) despite the nationalistic attitude of its leaders and strict legislation and fare policies. Russia is amongst the 10 primary exporters and the 20 primary importers in the world. Its main trade partners are China, Germany, The Netherlands and the United States. The country shows a high trade surplus and this should continue regardless of the drop in raw material prices and the deterioration of the global economic situation.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 164,281223,486291,861191,803248,397
Exports of Goods (million USD) 303,551354,403471,606303,388400,018
Imports of Services (million USD) 43,67956,76873,61659,24169,879
Exports of Services (million USD) 30,86638,96050,52741,06843,702
Imports of Goods and Services (Annual % Change) 21.326.214.8-30.417.9
Exports of Goods and Services (Annual % Change) 7.36.30.6-4.74.6
Imports of Goods and Services (in % of GDP) 21.021.522.120.520.5
Exports of Goods and Services (in % of GDP) 33.730.231.328.028.7
Trade Balance (million USD) 139,269130,915179,742111,585151,681
Trade Balance (Including Service) (million USD) 125,656112,027155,45391,750122,484
Foreign Trade (in % of GDP) 54.751.753.448.549.1

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Netherlands 14.3%
Italy 6.5%
China 5.3%
Germany 4.3%
Poland 3.8%
See More Countries 65.9%
Main Suppliers
(% of Imports)
2010
China 18.0%
Germany 12.2%
Ukraine 6.4%
Japan 4.7%
Italy 4.6%
See More Countries 54.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 34.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 18.6%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 12.8%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal 2.5%
Semi-finished products of iron or non-alloy steelSemi-finished products of iron or non-alloy steel 1.9%
See More Products 29.6%
Main Imports
(% of Imports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.2%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 4.2%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.5%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.3%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.2%
See More Products 83.5%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Gouvernement Russe
Ministère de l'Agriculture
Ministère du Développement économique et du Commerce
Ministère des Affaires étrangères
Ministère des Finances
Statistical Office
Goskomstat
Central Bank
Russian Central Bank
Stock Exchange
Russian Trading System
Moscow Interbank Currency Exchange
Search Engines
Russia on the Net
Atrus
Radio Free Liberty
Rambler
Russia.com
Spravki.net
Tela
Yandex
Economic Portals

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Political Outline

Executive Power
The President is the Head of State. He is elected by universal suffrage for four years.The real center of power in the country, he is the commander-in-chief of the army. The Prime Minister is the head of the government. He is appointed by the President, with the approval of the lower house of Parliament, and manages the everyday business of the country.
Legislative Power
Russia has a two-chamber legislative power. The Parliament, called the Federal Assembly, is composed of: the Council of the Federation (upper chamber), which has 78 seats and the members are appointed by the regional governors and legislative institutions, for a four-year term of office; and the State Douma (lower chamber), which has 450 seats; its members are elected by direct universal suffrage from partisan lists, for a four-year term.
Main Political Parties
Russia is a State with one dominant party - United Russia (a centrist party) which is in power. Opposition parties are authorized but they do not really have any chance of gaining power. The other important parties in the country are:
- The CPRF (Communist Party of the Russian Federation) – a nationalist and communist party;
A Just Russia (born of the merger between Rodina, the Russian Life party and the Russian Pensioners' party in 2006) - a center-left party, an ally of United Russia;
The LDPR (Liberal Democratic Party of Russia) - an extreme right nationalist political party;
- The SPS (Union of right-wing forces) - associated with reforms leading towards the free market economy and privatization, it supports western-style capitalism.
Current Political Leaders
President: Dmitri MEDVEDEV (elected on May 2008) – Independent
Prime Minister: Vladimir PUTIN (since May 2008) – Last president. United Russia Party President.
Next Election Dates
Presidential election: March 2012
Parliamentary: December 2011
 

Indicator of Freedom of the Press

World Rank:
140/178
Evolution:
13 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010

 

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Last Updates: January 2012