Home Russia Market Detail

Russia Market

2011: Russia's strong economic performance

In early 2011, Russian Prime Minister Vladimir Putin said that Russia's economy will recover in the first half of 2012 before the outbreak of the international financial crisis levels. At the end of 2011, the Russian economy, with its solid performance, going completely out of the crisis in 2012 to lay a solid foundation.
Russia's economic growth this year expected to reach 4.5%, inflation rate of 7%, a successful "zero deficit", and the federal budget surplus may reach 0.3% of GDP level. January to October this year, Russian international reserves grew 9.6%, reaching $ 525.557 billion, ranking third in the world; domestic population of registered unemployed fell to 1.2 million, the registered unemployment rate was 1.7%; national debt to GDP of accounts for only 12%.

Review of the Russian economy in 2011, energy exports are still strong support for economic growth. At present, Russia's revenue dependence on the energy industry more than 50%, strong international energy prices in Russia to increase revenue, eliminate the budget deficit, to protect social welfare spending plays a key role. Russian Energy Ministry data show that in 2011 Russian oil production will reach 509 million tons, oil production is expected to set a new record.

In 2011, Russia's integration into the economic globalization and regional economic integration has achieved initial results. First, the end of this year, Russia's WTO accession negotiations for 18 years, the summer of 2012 became a member of the World Trade Organization. Second, Russia, Belarus, Kazakhstan, the three countries to accelerate the process of economic integration. The three countries decided to set up the Eurasian Economic Committee to replace the existing customs union committee, and in 2015 established the Eurasian Economic Union. In the current complex and volatile international economic situation in the context of Russia to speed up integration with the world trading system, promote regional economic cooperation, no doubt will effectively boost domestic demand, strengthen the ability to withstand external economic risks.

Promote the economic modernization of the Russian government this year is still the focus of economic work. Russia to seize the current economic situation to the positive trend, from the economy to attract investment and development of innovative start to address structural economic issues, and promote economic development pattern.
First, through a series of strong measures to attract foreign investment. First, through the "Foreign Investment Law" amendment to simplify foreign investment in food, pharmaceuticals, banking and other industries of procedures to reduce the threshold for foreign investment in strategic industries. Second, the start of the first capital of 20 billion dollars in Russia's direct investment fund, proposed the establishment of centers to protect the interests of foreign investors. Third, the emphasis on improving the investment environment. Russian President Dmitry Medvedev has proposed a ten urgent measures to improve the investment environment. The Russian government "combined" effect has been revealed. According to the Russian Federation, National Bureau of Statistics, during the first half of 2011 foreign investment in Russia totaled $ 87.698 billion, compared with the first half of 2010 increased by 1.9 times.

Second, continue to create "two centers" that Driscoll Coward innovation centers and financial centers of Moscow, for the modern transformation of the economy to provide technical and financial support. Innovation Centre to accelerate the development of Skoll Coward, Russia "Tax Code", "Driscoll Coward Innovation Center Law" was amended to expand the business center Skoll Coward enjoyed tariff preferences. Meanwhile, steady progress in building the park, construction will be completed as planned in 2014. Early in 2008 the Russian government proposed to Moscow as an international financial center. Russia through the integration of the two stock exchanges this year, the formation of the International Advisory Committee to promote high-tech industries and other supporting measures to promote the fast track towards financial center in Moscow.

Finally, Russia's introduction of "Innovation 2020 strategic development plan," the draft, to promote innovative community development model to the proposed changes in the detailed planning. Russia intends to develop through clear objectives, priorities and national innovation policies to deal with the current in the field of innovation and development challenges.
Outlook 2012, Russia will continue to face complex external economic environment, and its domestic economic ills still part of the structure. Affected by the current global economic slowdown, the coming year in global energy supply and demand facing a great deal of uncertainty, so the Russian economy is also facing fluctuations. Russia next year will face the challenge of market opening after WTO entry, the domestic economy will withstand greater direct competition with foreign products and technology challenges. Debt crisis in Europe in particular, fermentation and slow U.S. economic recovery a lot of money back to U.S. and European markets, Russia's capital flight accelerated. In the first 10 months, the Russian net capital outflow of 640 billion dollars. This trend will intensify the Russian foreign exchange market, stock market risks.

For the future direction of economic development, National Economic Research Institute and other departments of the Russian experts discussed the recent "2020 strategy" proposed that Russia should enhance the competitiveness of their products internal and external development of export-oriented economy, continue to implement inflation, reduce the financial pressure reduce the tax burden and increase the export of non-resource areas of development policy.