Russia

Capital: Moscow

Local time:
It is %T:%M %A in Moscow, Kazan, Saint Petersburg
It is %T:%M %A in Iekaterinbourg, Perm, Chelyabinsk
It is %T:%M %A in Novosibirsk, Omsk
It is %T:%M %A in Vladivostok, Khabarovsk

Exchange rate on :

GDP growth rate: 3.700% in 2012

FDI inward stock: 324 065 million USD in 2007

Country risk: See the country risk analysis from Russia provided by Ducroire.

Economic trends

Due to the deterioration of the international economic situation, the GDP growth rate was negative in 2009. However, it will raise again in 2010 thanks to the hydrocarbon exports, and a strong domestic demand, especially due to the increase in salaries. The main threats to growth are linked to controlling inflation, which remains high and in the long term, to the drop in population.
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.
Over the last few years, the unemployment rate dropped sharply, a trend that should continue. 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 branches 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 northern regions of the country concentrate mainly on livestock and the southern regions as well as western Siberia produce cereals.
Russia inherited most of the Soviet Union's industrial bases. The most well developed sectors are chemicals, metallurgy, mechanical construction and defense sectors.
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.

International trade

The country is fairly open to foreign trade 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. 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.