Economy - overview:
Russia ended 2005 with its seventh straight year of growth, averaging 6.4% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last five years, and real personal incomes have realized average increases over 12%. During this time, poverty has declined steadily and the middle class has continued to expand. Russia has also improved its international financial position since the 1998 financial crisis, with its foreign debt declining from 90% of GDP to around 31%. Strong oil export earnings have allowed Russia to increase its foreign reserves from only $12 billion to some $180 billion at yearend 2005. These achievements, along with a renewed government effort to advance structural reforms, have raised business and investor confidence in Russia's economic prospects. Nevertheless, serious problems persist. Economic growth slowed to 5.9% for 2005 while inflation remains high. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, and widespread lack of trust in institutions. In addition, a string of investigations launched against a major Russian oil company, culminating with the arrest of its CEO in the fall of 2003 and the acquisition of the company by a state owned firm, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy. State control has increased in the past year with a number of large acquisitions. Most fundamentally, Russia has made little progress in building the rule of law, the bedrock of a modern market economy.
GDP (purchasing power parity):
$1.539 trillion (2005 est.)
GDP (official exchange rate):
$740.7 billion (2005 est.)
GDP - real growth rate:
5.9% (2005 est.)
GDP - per capita (PPP):
$10,700 (2005 est.)
GDP - composition by sector:
agriculture: 5%
industry: 35%
services: 60% (2005 est.)
Labor force:
74.22 million (2005 est.)
Labor force - by occupation:
agriculture: 10.3%
industry: 21.4%
services: 68.3% (2004 est.)
Unemployment rate:
7.6% plus considerable underemployment (2005 est.)
Population below poverty line:
17.8% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 38.7% (1998)
Distribution of family income - Gini index:
40 (2002)
Inflation rate (consumer prices):
11% (2005 est.)
Investment (gross fixed):
17.5% of GDP (2005 est.)
Budget:
revenues: $176.7 billion
expenditures: $125.6 billion; including capital expenditures of $NA (2005 est.)
Public debt:
15.6% of GDP (2005 est.)
Agriculture - products:
grain, sugar beets, sunflower seed, vegetables, fruits; beef, milk
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
Industrial production growth rate:
4% (2005 est.)
Electricity - production:
931 billion kWh (2004)
Electricity - consumption:
811.5 billion kWh (2004)
Electricity - exports:
24 billion kWh (2003)
Electricity - imports:
14 billion kWh (2002)
Oil - production:
9.15 million bbl/day (2005 est.)
Oil - consumption:
2.8 million bbl/day (2005 est.)
Oil - exports:
5.15 million bbl/day (2004)
Oil - imports:
75,000 bbl/day
Oil - proved reserves:
69 billion bbl (2003 est.)
Natural gas - production:
587 billion cu m (2005 est.)
Natural gas - consumption:
402.1 billion cu m (2004 est.)
Natural gas - exports:
157.2 billion cu m (2004 est.)
Natural gas - imports:
12 billion cu m (2004 est.)
Natural gas - proved reserves:
47.57 trillion cu m (2003)
Current account balance:
$89.31 billion (2005 est.)
Exports:
$245 billion (2005 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:
Netherlands 9.1%, Germany 8%, Ukraine 6.4%, Italy 6.2%, China 6%, US 5%, Switzerland 4.7%, Turkey 4.3% (2004)
Imports:
$125 billion (2005 est.)
Imports - commodities:
machinery and equipment, consumer goods, medicines, meat, sugar, semifinished metal products
Imports - partners:
Germany 15.3%, Ukraine 8.8%, China 6.9%, Japan 5.7%, Kazakhstan 5%, US 4.6%, Italy 4.6%, France 4.4% (2004)
Reserves of foreign exchange and gold:
$181.3 billion (2005 est.)
Debt - external:
$230.3 billion (30 June 2005 est.)
Economic aid - recipient:
in FY01 from US, $979 million (including $750 million in non-proliferation subsidies); in 2001 from EU, $200 million (2000 est.)
Currency (code):
Russian ruble (RUR)
Exchange rates:
Russian rubles per US dollar - 28.284 (2005), 28.814 (2004), 30.692 (2003), 31.349 (2002), 29.169 (2001)
Fiscal year:
calendar year
