Historically, from 1994 until 2013, Russia Exports averaged 18668.83 USD million reaching an all-time high of 51338 USD million in December 2011 and a record low of 4087 USD million in January 1994.
From Soviets to Oligarchs: Inequality and Property in Russia 1905-2016 Zinchenko, L.
Third is technological underdevelopment, eased somewhat by borrowing from the West in the 1920s.
And fourth lower living standards compared to Western Europe and North America. ===Soviet economy=== ====Industrialization under Stalin==== Beginning in 1928, the course of the Soviet Union's economy was guided by a series of five-year plans.
Second is the underdevelopment of modern economic activities, with very basic peasant agriculture dominant into the 1930s.
By the 1950s, the Soviet Union had rapidly evolved from a mainly agrarian society into a major industrial power. By the 1970s the Soviet Union entered the Era of Stagnation.
By the 1950s, the Soviet Union had rapidly evolved from a mainly agrarian society into a major industrial power. By the 1970s the Soviet Union entered the Era of Stagnation.
The cumbersome procedures for bureaucratic administration foreclosed the free communication and flexible response required at the enterprise level for dealing with worker alienation, innovation, customers, and suppliers. From 1975 to 1985, corruption and data fiddling became common practice among bureaucracy to report satisfied targets and quotas thus entrenching the crisis.
The cumbersome procedures for bureaucratic administration foreclosed the free communication and flexible response required at the enterprise level for dealing with worker alienation, innovation, customers, and suppliers. From 1975 to 1985, corruption and data fiddling became common practice among bureaucracy to report satisfied targets and quotas thus entrenching the crisis.
Trade with the EU forms 52.9%, with the CIS 15.4%, Eurasian Economic Community 7.8% and Asia-Pacific Economic Community 15.9%. == Mergers and acquisitions == Between 1985 and 2018 almost 28,500 mergers or acquisitions have been announced in Russia.
Starting in 1986, Mikhail Gorbachev attempted to address economic problems by moving towards a market-oriented socialist economy.
Since 1989 its institutional environment was transformed from a socialist command economy to a capitalistic market system.
Many of them promptly invested their newfound wealth abroad, producing an enormous capital flight. Difficulties in collecting government revenues amid the collapsing economy and dependence on short-term borrowing to finance budget deficits led to the 1998 Russian financial crisis. In the 1990s Russia was "the largest borrower" from the International Monetary Fund with loans totaling $20 billion.
Gorbachev's policies of Perestroika failed to rejuvenate the Soviet economy; instead, a process of political and economic disintegration culminated in the breakup of the Soviet Union in 1991. ===Transition to market economy (1991–98)=== Following the collapse of the Soviet Union, Russia underwent a radical transformation, moving from a centrally planned economy to a globally integrated market economy.
Russia has the world's 15th highest patent application rate, the 8th highest concentration of high-tech public companies, such as internet and aerospace and the third highest graduation rate of scientists and engineers. In 2019 Russia’s Natural Resources and Environment Ministry estimated the value of natural resources to $844 billion or 60% of the country's GDP. == Data == The following table shows the main economic indicators in 1992–2018.
Historically, from 1994 until 2013, Russia Exports averaged 18668.83 USD million reaching an all-time high of 51338 USD million in December 2011 and a record low of 4087 USD million in January 1994.
Historically, from 1994 until 2013, Russia imports averaged 11392.06 USD million reaching an all-time high of 31553 USD million in October 2012 and a record low of 2691 USD million in January 1999.
Historically, from 1997 until 2013, Russia balance of trade averaged 8338.23 USD million reaching an all-time high of 20647 USD million in December 2011 and a record low of −185 USD million in February 1998.
Many of them promptly invested their newfound wealth abroad, producing an enormous capital flight. Difficulties in collecting government revenues amid the collapsing economy and dependence on short-term borrowing to finance budget deficits led to the 1998 Russian financial crisis. In the 1990s Russia was "the largest borrower" from the International Monetary Fund with loans totaling $20 billion.
The IMF was the subject of criticism for lending so much as Russia introduced little of the reforms promised for the money and a large part of these funds could have been "diverted from their intended purpose and included in the flows of capital that left the country illegally". ===Recovery and growth (1999–2008)=== Russia bounced back from the August 1998 financial crash with surprising speed.
Historically, from 1997 until 2013, Russia balance of trade averaged 8338.23 USD million reaching an all-time high of 20647 USD million in December 2011 and a record low of −185 USD million in February 1998.
With deep corruption afflicting the process, the result was disastrous, with real GDP falling by more than 40% by 1999, [which wiped out personal savings, crime and destitution spreading rapidly.
Historically, from 1994 until 2013, Russia imports averaged 11392.06 USD million reaching an all-time high of 31553 USD million in October 2012 and a record low of 2691 USD million in January 1999.
The volume of consumer credit between 2000–2006 increased 45 times, fuelling a boom in private consumption.
The number of people living below poverty line declined from 30% in 2000 to 14% in 2008. Inflation remained a problem however, as the central bank aggressively expanded money supply to combat appreciation of the ruble.
Until October 2007, Russia maintained impressive fiscal discipline with budget surpluses every year from 2000. ===2009–14=== Russian banks were hit by the global credit crunch in 2008, though no long term damage was done thanks to proactive and timely response by the government and central bank, which shielded the banking system from effects of the global financial crisis.
Russia is rated one of the most unequal of the world’s major economies. Between 2000 and 2012 Russia's energy exports fueled a rapid growth in living standards, with real disposable income rising by 160%.
In dollar-denominated terms this amounted to a more than sevenfold increase in disposable incomes since 2000.
This growth was a combined result of the 2000s commodities boom, high oil prices, as well as prudent economic and fiscal policies.
Russian software exports have risen from just $120 million in 2000 to $3.3 billion in 2010.
Since the year 2000 the IT market has started growth rates of 30–40% a year, growing by 54% in 2006 alone.
53|publisher=Credit Suisse|access-date=13 April 2015|archive-url=https://web.archive.org/web/20150214155424/https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83|archive-date=14 February 2015|url-status=dead}} Russia also has the second-largest volume of illicit money outflows, having lost over $880 billion between 2002 and 2011 in this way.
The budget deficit narrowed to 0.6% of GDP in 2017 from 2.8% in 2016. ====National wealth fund and debt ==== On 1 January 2004, the Government of Russia established the Stabilization fund of the Russian Federation as a part of the federal budget to balance it if oil price falls.
As of December 2007, there were an estimated 4,900,000 broadband lines in Russia. In 2006, there were more than 300 BWA operator networks, accounting for 5% of market share, with dial-up accounting for 30%, and Broadband Fixed Access accounting for the remaining 65%.
Since the year 2000 the IT market has started growth rates of 30–40% a year, growing by 54% in 2006 alone.
Nevertheless, in 2007 the World Bank declared that the Russian economy achieved "unprecedented macroeconomic stability".
Until October 2007, Russia maintained impressive fiscal discipline with budget surpluses every year from 2000. ===2009–14=== Russian banks were hit by the global credit crunch in 2008, though no long term damage was done thanks to proactive and timely response by the government and central bank, which shielded the banking system from effects of the global financial crisis.
As of December 2007, there were an estimated 4,900,000 broadband lines in Russia. In 2006, there were more than 300 BWA operator networks, accounting for 5% of market share, with dial-up accounting for 30%, and Broadband Fixed Access accounting for the remaining 65%.
In terms of value, 2007 has been the most active year with 158 bil.
USD, whereas the number of deals peaked in 2010 with 3,684 (964 compared to the value record year 2007).
The number of people living below poverty line declined from 30% in 2000 to 14% in 2008. Inflation remained a problem however, as the central bank aggressively expanded money supply to combat appreciation of the ruble.
Until October 2007, Russia maintained impressive fiscal discipline with budget surpluses every year from 2000. ===2009–14=== Russian banks were hit by the global credit crunch in 2008, though no long term damage was done thanks to proactive and timely response by the government and central bank, which shielded the banking system from effects of the global financial crisis.
Since 2008 Forbes has repeatedly named Moscow the "billionaire capital of the world". The Russian economy risked going into recession from early 2014, mainly due to falling oil prices, sanctions, and the subsequent capital flight.
On 1 February 2008 the Stabilization fund was divided into two parts.
Deputy Finance Minister Sergei Storchak estimated it would reach 600–700 billion rubles by 1 February 2008.
A sharp, but brief recession in Russia was followed by a strong recovery beginning in late 2009. After eighteen years of negotiations, Russia's membership to the WTO was accepted in 2011.
In 2009, companies belonging to the United Aircraft Corporation delivered 95 new fixed-wing aircraft to its customers, including 15 civilian models.
As a consequence, in 2009 the IT market in Russia declined by more than 20% in ruble terms and by one-third in euro terms.
The world's only fleet of nuclear-powered icebreakers advances the economic exploitation of the Arctic continental shelf of Russia and the development of sea trade through the Northern Sea Route. ====Construction==== In 2009 the Russian construction industry survived its most difficult year in more than a decade.
The 0.8% reduction recorded by the industry for the first three quarters of 2010 looked remarkably healthy in comparison with the 18.4% slump recorded the previous year, and construction firms became much more optimistic about the future than in previous months.
Thus, if "banking" lines of business are excluded, Russian insurance market is in stagnation stage for the last four years, as premiums to GDP ratio net of life and accident insurance remains at the same level of 1.1% since 2010. ====Information technology==== The IT market is one of the most dynamic sectors of the Russian economy.
Russian software exports have risen from just $120 million in 2000 to $3.3 billion in 2010.
USD, whereas the number of deals peaked in 2010 with 3,684 (964 compared to the value record year 2007).
Since 2010 value and numbers have decreased constantly and another wave of M&A is expected. The majority of deals in, into or out of Russia have taken place in the financial sector (29%), followed by banks (8.6%), oil and gas (7.8%) and Metals and Mining (7.2%). Here is a list of the top deals with Russian companies participating ranked by deal value in mil.
A sharp, but brief recession in Russia was followed by a strong recovery beginning in late 2009. After eighteen years of negotiations, Russia's membership to the WTO was accepted in 2011.
53|publisher=Credit Suisse|access-date=13 April 2015|archive-url=https://web.archive.org/web/20150214155424/https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83|archive-date=14 February 2015|url-status=dead}} Russia also has the second-largest volume of illicit money outflows, having lost over $880 billion between 2002 and 2011 in this way.
Historically, from 1997 until 2013, Russia balance of trade averaged 8338.23 USD million reaching an all-time high of 20647 USD million in December 2011 and a record low of −185 USD million in February 1998.
Historically, from 1994 until 2013, Russia Exports averaged 18668.83 USD million reaching an all-time high of 51338 USD million in December 2011 and a record low of 4087 USD million in January 1994.
In 2012 oil, gas and petroleum products accounted for over 70% of total exports.
Russia is rated one of the most unequal of the world’s major economies. Between 2000 and 2012 Russia's energy exports fueled a rapid growth in living standards, with real disposable income rising by 160%.
Total amount of premiums charged (without CHI) in 2013 is RUB 904.9 bln (increase on 11.8% compared to 2012), total amount of claims paid is RUB 420.8 bln (increase on 13.9% compared to 2012).
Level of claims paid on the market total without CHI is 46.5%, an insufficient increase compared to 2012.
The number of policies in 2013 increased on 0.1% compared to 2012, to 139.6 mln policies. Although relative indicators of the Russian insurance market returned to pre-crisis levels, the progress is achieved mainly by the increase of life insurance and accident insurance, the input of these two market segments in premium growth in 2013 largely exceeds their share on the market.
At the same time premium to GDP ratio net of life and accident insurance remained at the same level of 1.1% as in 2012.
Exports in Russia decreased to 39038 USD million in January 2013 from 48568 USD million in December 2012.
Imports in Russia decreased to 21296 USD million in January 2013 from 31436 USD million in December 2012.
Historically, from 1994 until 2013, Russia imports averaged 11392.06 USD million reaching an all-time high of 31553 USD million in October 2012 and a record low of 2691 USD million in January 1999.
Wheel of Fortune: The Battle for Oil and Power in Russia (Harvard UP, 2012).
In 2013, Russia was labeled a [economy] by the World Bank. Russian leaders repeatedly spoke of the need to diversify the economy away from its dependence on oil and gas and foster a high-technology sector.
This economic model appeared to show its limits, when after years of strong performance, Russian economy expanded by a mere 1.3% in 2013.
However, these gains have been distributed unevenly, as the 110 wealthiest individuals were found in a report by Credit Suisse to own 35% of all financial assets held by Russian [web|url=https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83|title=Global Wealth Report 2013 - Pg.
Eleven foreign carmakers have production operations or are constructing their plants in Russia. ====Electronics==== Russia is experiencing a regrowth of microelectronics, with the revival of JCS Mikron. ===Services=== ====Retail==== As of 2013, Russians spent 60% of their pre-tax income shopping, the highest percentage in Europe.
The downturn served to emphasise the importance of the government to the construction market. ====Insurance==== According to the Central Bank of Russia 422 insurance companies operate on the Russian insurance market by the end of 2013.
The concentration of insurance business is significant across all major segments except compulsory motor third party liability market (CMTPL), as the Top 10 companies in 2013 charged 58.1% premiums in total without compulsory health insurance (CHI).
Russian insurance market in 2013 demonstrated quite significant rate of growth in operations.
Total amount of premiums charged (without CHI) in 2013 is RUB 904.9 bln (increase on 11.8% compared to 2012), total amount of claims paid is RUB 420.8 bln (increase on 13.9% compared to 2012).
Premiums to GDP ratio (total without CHI) in 2013 increased to 1.36% compared to 1.31 a year before.
The number of policies in 2013 increased on 0.1% compared to 2012, to 139.6 mln policies. Although relative indicators of the Russian insurance market returned to pre-crisis levels, the progress is achieved mainly by the increase of life insurance and accident insurance, the input of these two market segments in premium growth in 2013 largely exceeds their share on the market.
The rise of these lines is connected, evidently, with the increase in consumer loans, as the total sum of credit obligations of population in 2013 increased by 28% to RUB 9.9 trillion.
Sergius and Lake Baikal. ==External trade and investment== ===Trade=== Russia recorded a trade surplus of USD$15.8 billion in 2013.
Historically, from 1997 until 2013, Russia balance of trade averaged 8338.23 USD million reaching an all-time high of 20647 USD million in December 2011 and a record low of −185 USD million in February 1998.
Exports in Russia decreased to 39038 USD million in January 2013 from 48568 USD million in December 2012.
Historically, from 1994 until 2013, Russia Exports averaged 18668.83 USD million reaching an all-time high of 51338 USD million in December 2011 and a record low of 4087 USD million in January 1994.
Imports in Russia decreased to 21296 USD million in January 2013 from 31436 USD million in December 2012.
Historically, from 1994 until 2013, Russia imports averaged 11392.06 USD million reaching an all-time high of 31553 USD million in October 2012 and a record low of 2691 USD million in January 1999.
The Oxford handbook of the Russian economy (Oxford UP, 2013) excerpt. Åslund, Anders.
Political turmoil in neighboring Ukraine added to the uncertainty and suppressed investment. ===2014–present=== Following the annexation of Crimea in March 2014 and Russia's involvement in the ongoing War in Donbass, the United States, the European Union, Canada and Japan imposed sanctions on Russia.
Russia responded with sanctions against a number of countries, including a one-year period of total ban on food imports from the European Union and the United States. According to the Russian economic ministry in July 2014, GDP growth in the first half of 2014 was 1%.
The ministry projected growth of 0.5% for 2014.
The Russian economy grew by a better than expected 0.6% in 2014.
Since 2008 Forbes has repeatedly named Moscow the "billionaire capital of the world". The Russian economy risked going into recession from early 2014, mainly due to falling oil prices, sanctions, and the subsequent capital flight.
While in 2014 GDP growth remained positive at 0.6%, in 2015 the Russian economy shrunk by 3.7% and was expected to shrink further in 2016.
The growth continued in 2017, with an increase of 1.5%. In January 2016, the US company Bloomberg rated Russia's economy as the 12th most innovative in the world, up from 14th in January 2015 and 18th in January 2014.
53|publisher=Credit Suisse|access-date=13 April 2015|archive-url=https://web.archive.org/web/20150214155424/https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83|archive-date=14 February 2015|url-status=dead}} Russia also has the second-largest volume of illicit money outflows, having lost over $880 billion between 2002 and 2011 in this way.
While in 2014 GDP growth remained positive at 0.6%, in 2015 the Russian economy shrunk by 3.7% and was expected to shrink further in 2016.
The growth continued in 2017, with an increase of 1.5%. In January 2016, the US company Bloomberg rated Russia's economy as the 12th most innovative in the world, up from 14th in January 2015 and 18th in January 2014.
Russia runs regular trade surpluses primarily due to exports of commodities. In 2015, Russia main exports are oil and natural gas (62.8% of total exports), ores and metals (5.9%), chemical products (5.8%), machinery and transport equipment (5.4%) and food (4.7%).
In 2016, the oil-and-gas sector accounted for 36% of federal budget revenues.
While in 2014 GDP growth remained positive at 0.6%, in 2015 the Russian economy shrunk by 3.7% and was expected to shrink further in 2016.
By 2016, the Russian economy rebounded with 0.3% GDP growth and is officially out of the recession.
The growth continued in 2017, with an increase of 1.5%. In January 2016, the US company Bloomberg rated Russia's economy as the 12th most innovative in the world, up from 14th in January 2015 and 18th in January 2014.
Inflation under 5% is in green. ==Public policy== ===Fiscal policy=== Russia was expected to have a Government Budget deficit of $21 billion in 2016.
The budget deficit narrowed to 0.6% of GDP in 2017 from 2.8% in 2016. ====National wealth fund and debt ==== On 1 January 2004, the Government of Russia established the Stabilization fund of the Russian Federation as a part of the federal budget to balance it if oil price falls.
Since 2016, Russia is the largest exporter of wheat in the world. While large farms concentrate mainly on grain production and animal husbandry, while small private [plot]s produce most of the country's potatoes, vegetables and fruits.
The growth continued in 2017, with an increase of 1.5%. In January 2016, the US company Bloomberg rated Russia's economy as the 12th most innovative in the world, up from 14th in January 2015 and 18th in January 2014.
The budget deficit narrowed to 0.6% of GDP in 2017 from 2.8% in 2016. ====National wealth fund and debt ==== On 1 January 2004, the Government of Russia established the Stabilization fund of the Russian Federation as a part of the federal budget to balance it if oil price falls.
It was the world's 6th largest producer of uranium in 2018.
Russia is the home to the finest caviar in the world; and maintains one of the world's largest fishing fleets, ranking sixth in the world in tonnage of fish caught; capturing 4,773,413 tons of fish in 2018. ===Industry=== ====Defense industry==== The defense industry of Russia is a strategically important sector and a large employer in the country.
Russia produced 1,767,674 vehicles in 2018, ranking 13th among car-producing nations in 2018, and accounting for 1.8% of the worldwide production.
Russia's international tourism receipts in 2018 amounted to $11.6 billion.
Trade with the EU forms 52.9%, with the CIS 15.4%, Eurasian Economic Community 7.8% and Asia-Pacific Economic Community 15.9%. == Mergers and acquisitions == Between 1985 and 2018 almost 28,500 mergers or acquisitions have been announced in Russia.
Putinomics: Power and money in resurgent Russia (UNC Press Books, 2018).
Russia has the world's 15th highest patent application rate, the 8th highest concentration of high-tech public companies, such as internet and aerospace and the third highest graduation rate of scientists and engineers. In 2019 Russia’s Natural Resources and Environment Ministry estimated the value of natural resources to $844 billion or 60% of the country's GDP. == Data == The following table shows the main economic indicators in 1992–2018.
It is the fourth-largest electricity producer in the world, and the ninth-largest renewable energy producer in 2019.
In 2019, the country was the fourth-largest nuclear energy producer in the world; nuclear generated 20% of the country's electricity. ====Mining==== Russia is also a leading producer and exporter of minerals and gold.
In 2019, Russia was the world's third-biggest exporter of arms, behind only the United States and China. ====Aerospace==== Aircraft manufacturing is an important industry sector in Russia, employing around 355,300 people.
Russia is ranked 39th in the Travel and Tourism Competitiveness Report 2019.
According to Federal Agency for Tourism, the number of inbound trips of foreign citizens to Russia amounted to 24.4 million in 2019.
Russia’s Crony Capitalism: The Path from Market Economy to Kleptocracy (Yale University Press, 2019).
The National Prosperity Fund is to be invested into more risky instruments, including the shares of foreign companies. Russia has one of the lowest foreign debts among major economies. ===Corruption=== Russia was the lowest rated European country in Transparency International's Corruption Perceptions Index for 2020; ranking 129th out of 180 countries.
In 2020, tourism accounted for about 4% of country's GDP.
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