Russian economy

Russian economy in recent years has undergone significant changes, it has become more stable and open. This is confirmed by the leading rating agencies and macroeconomic indicators.

In 2012 Russia’s GDP growth reached 3.4 % and that in the first 9 months of 2013 – 1.5%.

Unemployment continues to show the lowest level since 1993 – 5.2%.

For the third consecutive year inflation remains under 7%.

However, it is obvious that the amount of foreign investment received in the national economy is insufficient. In terms of GDP Russia takes the 5th place in the world, and in terms of attracting foreign direct investment – it is only the 13th.

In 2012 the domestic economy has received $ 18.7 billion in foreign direct investments, 40 % of which came from countries such as Cyprus, Luxembourg, Bermuda and the Virgin Islands.

Geographically investments are uneven across regions. 10 regions of the Russian Federation account for 80 % of all foreign investment. Moscow has the largest share of 32%, 18 % of the investments are taken by the Sakhalin area where major energy projects are implemented jointly with foreign partners.

In the top 10 there are also Moscow region, St. Petersburg, Kaluga region, Leningrad region, Chelyabinsk region, Arkhangelsk region, Nizhny Novgorod region and Komi Republic .

The fact that 73 regions of the Russian Federation attract only 20% of all foreign investment cannot be satisfactory at all.

Russia has a balanced budget policy and one of the lowest public debt in Europe and in the world – about $ 150 billion, or 8 % of GDP.

At the same time the volume of foreign exchange reserves is more than $ 500 billion putting Russia in third place in the world (after China and Japan).

The social sphere also demonstrates good performance. The cash income of population is steadily growing. Russia has the highest birth rate over the last 19 years. More regions show natural population growth. In January-July 2013 natural population growth was recorded in 40 regions of Russia.

Positive demographic indicators suggest a good mood in the society and citizens’ confidence in the future.

Due to systemic reforms Russia is starting to have a competitive advantage almost in all areas.