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June 13, 2024  

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Russia: Economy

Economy Russia
Economy - overview:
A decade after the implosion of the Soviet Union in December 1991, Russia is still struggling to establish a modern market economy and achieve strong economic growth. In contrast to its trading partners in Central Europe - which were able within 3 to 5 years to overcome the initial production declines that accompanied the launch of market reforms - Russia saw its economy contract for five years, as the executive and legislature dithered over the implementation of many of the basic foundations of a market economy. Russia achieved a slight recovery in 1997, but the government's stubborn budget deficits and the country's poor business climate made it vulnerable when the global financial crisis swept through in 1998. The crisis culminated in the August depreciation of the ruble, a debt default by the government, and a sharp deterioration in living standards for most of the population. The economy subsequently has rebounded, growing by an average of more than 6% annually in 1999-2002 on the back of higher oil prices and the 60% depreciation of the ruble in 1998. These GDP numbers, along with a renewed government effort to advance lagging structural reforms, have raised business and investor confidence over Russia's prospects in its second decade of transition. Yet serious problems persist. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's industrial base is increasingly dilapidated and must be replaced or modernized if the country is to maintain vigorous economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, local and regional government intervention in the courts, and widespread lack of trust in institutions. In 2003 President PUTIN further tightened his control over the "oligarchs," especially in the realm of political expression.
purchasing power parity - $1.409 trillion (2002 est.)
GDP - real growth rate:
4.3% (2002 est.)
GDP - per capita:
purchasing power parity - $9,700 (2002 est.)
GDP - composition by sector:
agriculture: 5.8%
industry: 34.6%
services: 59.6% (2002 est.)
Population below poverty line:
25% (37622 est.)
Household income or consumption by percentage share:
lowest 10%: 5.9%
highest 10%: 47% (2001)
Distribution of family income - Gini index:
39.9 (2001)
Inflation rate (consumer prices):
15% (2002 est.)
Labor force:
71.8 million (2002 est.)
Labor force - by occupation:
agriculture 12.3%, industry 22.7%, services 65% (2002 est.)
Unemployment rate:
7.9% plus considerable underemployment (2002)
revenues: $70 billion
expenditures: $62 billion, including capital expenditures of $NA (2002 est.)
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; 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
Industrial production growth rate:
3.7% (2002 est.)
Electricity - production:
846.5 billion kWh (2001)
Electricity - production by source:
fossil fuel: 64.3%
hydro: 20.5%
other: 0.4% (2001)
nuclear: 14.8%
Electricity - consumption:
773 billion kWh (2001)
Electricity - exports:
21.16 billion kWh (2001)
Electricity - imports:
7 billion kWh (2001)
Oil - production:
7.286 million bbl/day (2001 est.)
Oil - consumption:
2.595 million bbl/day (2001 est.)
Oil - exports:
NA (2001)
Oil - imports:
NA (2001)
Oil - proved reserves:
51.22 billion bbl (37257)
Natural gas - production:
580.8 billion cu m (2001 est.)
Natural gas - consumption:
408.1 billion cu m (2001 est.)
Natural gas - exports:
205.4 billion cu m (2001 est.)
Natural gas - imports:
32.7 billion cu m (2001 est.)
Natural gas - proved reserves:
47.86 trillion cu m (37257)
Agriculture - products:
grain, sugar beets, sunflower seed, vegetables, fruits; beef, milk
$104.6 billion (2002 est.)
Exports - commodities:
petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures
Exports - partners:
Germany 7.5%, Italy 6.9%, Netherlands 6.7%, China 6.3%, US 6.1%, Ukraine 5.5%, Belarus 5.4%, Switzerland 5% (2002)
$60.7 billion (2002 est.)
Imports - commodities:
machinery and equipment, consumer goods, medicines, meat, sugar, semifinished metal products
Imports - partners:
Germany 14.3%, Belarus 8.9%, Ukraine 7.1%, US 6.4%, China 5.2%, Italy 4.8%, Kazakhstan 4.3%, France 4.1% (2002)
Debt - external:
$153.5 billion (yearend 2002)
Economic aid - recipient:
in FY01 from US, $979 million (including $750 million in non-proliferation subsidies); in 2001 from EU, $200 million
Russian ruble (RUR)
Currency code:
Exchange rates:
Russian rubles per US dollar - 31.27 (2002), 29.17 (2001), 28.13 (2000), 24.62 (1999), 9.71 (1998)
note: the post-1 January 1998 ruble is equal to 1,000 of the pre-1 January 1998 rubles
Fiscal year:
calendar year

Also See:

Background & Country Profile
Transnational Issues & International Disputes


Source: The CIA World Fact Book 2003

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