Estimated GDP: US $ 1,572 billion (2019)
Per capita income (purchasing power parity): US $ 25,036 (2019)
Human Development Rank (HDI): Rank 49 (of 189) (2019)
Proportion of poverty (less than $ 2 per day): 0.1%
Distribution of income (Gini coefficient): 37.7 (2019)
Economic Transformation Index (BTI): Rank 50 (of 137) (2020)
The most important economic sector is trade, hospitality and transport with 30.3% of the gross domestic product. Financing, rental and services follow with 16.5% and the manufacturing industry with 16.0%. Other public and private services account for 14.5% of GDP, followed by mineral extraction with 11.6%, construction with 4.2% and agriculture and forestry with 2.5%. The supply of electricity, gas and water contributes 3.7% to GDP.
The labor market is divided into three areas: agriculture with around 10%, industry with 27% and services with 62% of employees. Around 57% of employees have an employment relationship with a private employer and 32% work in the public sector and its institutions. The remaining 11% work for churches, foreign and other employers.
According to ezinereligion, the energy industry is of central economic importance for Russia. It has a share of a quarter of the gross domestic product and thus contributes around half of the country’s total industrial production. It has been the engine of Russia’s economic recovery in recent years.
Although oil and gas dominate the Russian energy industry, Russia also has significant coal mining, with a share of 12% of the country’s primary energy supply, as well as power plants with an annual production of over 900 billion kWh.
Russia’s government and raw material companies are working intensively on the exploration and development of new oil, natural gas, coal and metal deposits. Aspects such as efficiency, sustainability and safety of the production processes are increasingly coming to the fore.
In oil production, large sums of money will be invested in the development and exploration of four new shelf sections around the island of Sakhalin. Russia’s coal industry wants to mine coal even more efficiently with ever deeper pits and new technology. Almost all companies from the most important coal region, the Kuznetsk Basin, are investing in improved drilling and safety.
The future of Russian gas production lies on the Yamal peninsula with over 30 sites. A liquefaction plant on the Yamal peninsula went into operation in December 2017. Natural gas production increased significantly in 2018 and reached 730 billion cubic meters. Thanks to new gas pipelines and liquefied gas terminals, gas exports are reaching record levels. The LNG exports to Asia in 2018 increased by 59 percent to 26 billion cubic meters. By 2035, Russia wants to increase its global market share in LNG from the current 4 percent to up to 20 percent.
Although the state protects many industries from competition and restricts imports, industrial production fell by 3.4% in 2015. In 2017 industrial production only increased by 1.0%.
In 2019 industrial production grew by 2.4 percent. The profit sectors included the extraction of natural resources, the automotive industry, food production and processing, and medical technology. The construction industry and information and communication technology also developed dynamically. Furthermore, all forms of mechanical engineering, from rolling mills to high-powered aircraft and space carriers, defense industries, including radar and aircraft production and electronic components, shipbuilding and the chemical industry, played an important role.
The digitization and the introduction of Industry 4.0 solutions aim to advance the engineering development. As part of the policy of import substitution, Russian manufacturers receive state aid to increase their output.
Russia accounts for around 10% of all arable land in the world. Arable farming takes place mainly in the Middle Wolgaland, the North Caucasus, the Urals and western Siberia. Almost 40% of gross agricultural production is accounted for by arable farming, over 60% by cattle breeding. The most important crops are cereals, sugar beets, sunflowers, potatoes and flax. Animal breeding specializes in meat, milk and wool production.
With the privatization measures of the 1990’s, Russian agriculture experienced an unprecedented decline. Productivity fell sharply, 20 million hectares of agricultural land fell fallow, gross agricultural production fell by 45% by the end of the 1990’s.
The priorities of the Russian agricultural policy are restructuring of farm debts, stabilization of the grain market, “tailor-made protectionism” in the form of an active and flexible customs policy and the launch of a program for granting low-interest loans to producers. The “ agro-industrial complex ” is one of the four national funding projects. The sub-areas “Livestock farming”, “Development of small businesses” and “Housing for specialists in the agricultural sector” must be given priority. Thanks to these efforts has Russian agriculture the apex of the crisis passed.
In recent years, with the help of state subsidies and counter-sanctions imposed import restrictions for agricultural products and food from the European Union, Russian agriculture has become a growth engine of the economy. The production of agricultural products increased in value by 2.4 percent to 85.7 billion euros in 2017 and increased by a further 2.5 percent from January to May 2018. In cereals which wheat 85.8 million tonnes – – 2017 134.1 million tons, a historical record surpassed. Meat production now also covers domestic demand.