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. Nonetheless, the rapid privatization process, including a much criticized “loans-for-shares” scheme that turned over major state-owned firms to politically-connected “oligarchs”, has left equity ownership highly concentrated.
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 2009 Russia was the world’s largest exporter of natural gas, the second largest exporter of oil, and the third largest exporter of steel and primary aluminum – and other less competitive heavy industries that remain dependent on the Russian domestic market. This reliance on commodity exports makes Russia 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. A revival of Russian agriculture in recent years has led to Russia shifting from being a net grain importer to a net grain exporter. The economy had averaged 7% growth since 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. 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 appears to have bottomed out in mid-2009 and by the second half of the year there were signs that the economy was growing, albeit slowly. Long-term challenges include a shrinking workforce, a high level of corruption, and poor infrastructure in need of large capital investment.
Russia’s GDP (purchasing power parity):
$2.116 trillion (2009 est.)
country comparison to the world: 8
$2.297 trillion (2008 est.)
$2.183 trillion (2007 est.)
note: data are in 2009 US dollars
GDP (official exchange rate):
$1.232 trillion (2009 est.)
Russia’s GDP – Real Growth Rate:
-7.9% (2009 est.)
country comparison to the world: 206
5.2% (2008 est.)
8.5% (2007 est.)
Russia’s GDP – Per Capita (PPP):
$15,100 (2009 est.)
country comparison to the world: 73
$16,300 (2008 est.)
$15,400 (2007 est.)
note: data are in 2009 US dollars
Russia’s GDP – Composition by Sector:
agriculture: 4.7%
industry: 32.9%
services: 62.4% (2009 est.)
Russian Labor Force:
75.7 million (2009 est.)
country comparison to the world: 7
Labor force – by occupation:
agriculture: 10%
industry: 31.9%
services: 58.1% (2008)
Russia’s Unemployment Rate:
8.4% (2009 est.)
country comparison to the world: 97
6.4% (2008 est.)
Russian Population Below Poverty Line:
15.8% (November 2007)
Russia’s Household Income or Consumption by Percentage Share:
lowest 10%: 1.9%
highest 10%: 30.4% (September 2007)
Distribution of family income – Gini index:
42.3 (2008)
country comparison to the world: 53
39.9 (2001)
Russia’s Investment (gross fixed):
21.5% of GDP (2009 est.)
country comparison to the world: 74
Russia’s Budget:
revenues: $231.1 billion
expenditures: $303.6 billion (2009 est.)
Public debt:
8.3% of GDP (2009 est.)
country comparison to the world: 123
6.5% of GDP (2008 est.)
Russia’s Inflation Rate (consumer prices):
11.7% (2009 est.)
country comparison to the world: 203
14.1% (2008 est.)
Russian Central Bank Discount Rate:
8.75% (31 December 2009)
country comparison to the world: 28
13% (31 December 2008)
Commercial bank prime lending rate:
15.31% (31 December 2009 est.)
country comparison to the world: 73
12.23% (31 December 2008 est.)
Stock of narrow money:
$252.5 billion (31 December 2008)
$303.7 billion (31 December 2007)
Stock of broad money:
$645.5 billion (31 December 2009)
$571 billion (31 December 2008)
Stock of domestic credit:
$420.4 billion (31 December 2009 est.)
country comparison to the world: 25
$428.3 billion (31 December 2008 est.)
Russia’s Market Value of Publicly Traded Shares:
$861.4 billion (31 December 2009 est.)
country comparison to the world: 7
$1.322 trillion (31 December 2008)
$1.503 trillion (31 December 2007 est.)
Russian Agriculture Products:
grain, sugar beets, sunflower seed, vegetables, fruits; beef, milk
Russian 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
Russia’s Industrial Production Growth Rate:
-13.1% (2009 est.)
country comparison to the world: 152
Russia’s Electricity Production:
1.04 trillion kWh (2008)
country comparison to the world: 4
Electricity – consumption:
1.023 trillion kWh (2008)
country comparison to the world: 4
Electricity – exports:
20.7 billion kWh (2008 est.)
Electricity – imports:
3.105 billion kWh (2008)
Russia’s Oil Production:
9.932 million bbl/day (2009 est.)
country comparison to the world: 1
Oil – consumption:
2.85 million bbl/day (2009 est.)
country comparison to the world: 6
Oil – exports:
4.93 million bbl/day (2009 est.)
country comparison to the world: 2
Oil – imports:
48,000 bbl/day (2008 est.)
country comparison to the world: 87
Oil – proved reserves:
79 billion bbl (1 January 2009 est.)
country comparison to the world: 8
Russia’s Natural Gas Production:
546.8 billion cu m (2009 est.)
country comparison to the world: 2
Natural gas – consumption:
367.5 billion cu m (2009 est.)
country comparison to the world: 3
Natural gas – exports:
207.7 billion cu m (2009)
country comparison to the world: 1
Natural gas – imports:
28.4 billion cu m (2009)
country comparison to the world: 10
Natural gas – proved reserves:
47.57 trillion cu m (1 January 2010 est.)
country comparison to the world: 1
Russia’s Current Account Balance:
$48.97 billion (2009 est.)
country comparison to the world: 6
$103.7 billion (2008 est.)
Russian Exports:
$303.4 billion (2009 est.)
country comparison to the world: 13
$471.6 billion (2008 est.)
Exports – commodities:
petroleum and petroleum products, natural gas, grain, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures
Exports – partners:
Netherlands 10.62%, Italy 6.46%, Germany 6.24%, China 5.69%, Turkey 4.3%, Ukraine 4.01% (2009)
Russian Imports:
$191.8 billion (2009 est.)
country comparison to the world: 19
$291.9 billion (2008 est.)
Imports – commodities:
vehicles, machinery and equipment, plastics, medicines, iron and steel, consumer goods, meat, fruits and nuts, semifinished metal products
Imports – partners:
Germany 14.39%, China 13.98%, Ukraine 5.48%, Italy 4.84%, US 4.46% (2009)
Russia’s Reserves of Foreign Exchange and Gold:
$439.4 billion (31 December 2009 est.)
country comparison to the world: 3
$426.3 billion (31 December 2008 est.)
Russian External Debt:
$387.7 billion (31 December 2009 est.)
country comparison to the world: 20
$402.5 billion (31 December 2008 est.)
Stock of direct foreign investment – at home:
$256.8 billion (31 December 2009 est.)
country comparison to the world: 19
$219.7 billion (31 December 2008 est.)
Russia’s Stock of Direct Foreign Investment Abroad:
$224.5 billion (31 December 2009 est.)
country comparison to the world: 16
$179.2 billion (31 December 2008 est.)
Russian Exchange Rates:
Russian rubles (RUB) per US dollar – 32 (2009), 24.853 (2008), 25.581 (2007), 27.191 (2006), 28.284 (2005)
This information comes from the CIA World Factbook January 2010.
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