Russian GDP by years: dynamics and structure

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

The Russian economy is mixed: strategic areas are state-owned. Market reforms took place in the 1990s, as a result of which many industries were privatized. However, the energy sector and the military-industrial complex remained in the hands of the state. If we consider the indicator of Russia's GDP by years, it can be noted that the country belongs to the "above average" group. In addition, about 30% of the planet's natural resources are concentrated in the country. According to the World Bank, their combined value is more than 75 trillion US dollars. A significant share of Russia's GDP comes from sales of energy resources: oil and natural gas.

Overview

After the collapse of the USSR, all the now former Soviet republics began to rebuild their economies, including Russia. However, important areas remained in the hands of the state, and the protection of private property rights was not established at the proper level. The Government of the Russian Federation provides significantimpact on the economy. Today, Russia is a leading supplier of oil and natural gas, as well as an exporter of metals such as steel and aluminium. Therefore, the country is extremely dependent on world food prices.

Key indicators

Gross domestic product (2017): nominal - 1.56 trillion US dollars, at purchasing power parity - 3.94. Average GDP growth in Russia by years from 1996 to 2016 - 3.08%. The country's external debt, as of December 2015, is 538 billion US dollars, gold and foreign exchange reserves as of August 2016 - 396.4. The shadow sector of the economy, according to official estimates, is about 15% of GDP. Another 7% is not taken into account due to the presence of corruption. According to the World Bank, the gross domestic product is one and a half times larger due to the presence of the shadow economy.

Russian GDP dynamics

The gross domestic product of the Russian Federation today reflects 2.15% of the world. Considering Russia's GDP by years since independence, it can be noted that on average it is 877.38 billion US dollars. Its minimum level was recorded in 1999, the maximum - in 2013. The average gross domestic product at purchasing power parity for this period was $8,621.41 billion.

Table of Russia's GDP at the official exchange rate

year	2007	2008	2009	2010	2011	2012	2013	2014	2015
bn. USD USA	1300	1661	1223	1525	2034	2154	2232	2053	1331

In 2014, a recession began in Russia due to falling oil prices, Western sanctions and the subsequent capital outflow. The growth was 0.6%. In 2015, GDP shrank by 3.7%. This trend was expected to continue in 2016. However, the growth was 0.3%. According to the forecasts of the World Bank and the IMF, in 2017 the gross domestic product will continue to grow. If oil prices are at the level of $40 per barrel, then we can expect it to fall by more than 5%.

Uneven income distribution

In 2015, the Russian economy ranked sixth in terms of purchasing power parity and twelfth in terms of market exchange rates. If we consider Russia's GDP by years (in 2000-2012), it can be noted that living standards were increased due to the export of energy resources. During this period, real disposable income grew by 160%, and in dollars - by 7 times. However, at the same time, the unemployment and poverty rates have almost halved, and Russians' life satisfaction scores have increased significantly. This significant growth took place against the backdrop of a commodity boom, high oil prices, effective economic and budgetary policies. However, incomes among the inhabitants of the country are distributed unevenly. The 110 richest Russians are estimated to own 35% of all financial assets. The inaction of the state in this area has led to the fact that Russiaranks second in terms of illegal cash outflows. It is estimated to have lost $880 billion between 2002 and 2011.

Nominal wages have now fallen below $450 a month. About 19.2 million Russians live below the poverty line. In 2015, they were 16% less. Incomes are distributed unevenly and geographically. Moscow is often called a billionaire city. The uneven distribution of income is largely due to the prevalence of corrupt practices and the weakness of legislative mechanisms. Transparency International ranked Russia 131 out of 176 in 2016.

Sectors of the economy

If we consider Russia's GDP for 10 years, we can note that its structure has not changed much. Today, agriculture accounts for about 5%, industry - more than 30%, services - 60%. The economically active population is 76.9 million people. Of these, about 9% are employed in agriculture, 28% in industries, and 63% in services. The unemployment rate in 2016 was 5.3%.

Outer Sector

The volume of exports of the Russian Federation, as of 2016, is 251 billion US dollars. The dynamics of Russia's GDP significantly depends on it. Such goods as oil and its products, metals, timber, and chemicals are exported abroad. Russia's main export partner is the Netherlands. They account for 11.9% of the total. On the secondplace is China with 8.3%, in third place is Germany with 7.4%. Among the export partners of Russia are also such countries as Italy, Turkey, Belarus, Japan. The volume of imports of the Russian Federation, as of 2016, is 172 billion US dollars. Thus, the trade balance is positive. Consumer goods, machinery, vehicles, pharmaceutical products, plastics, processed metals, meat, fruits and nuts, optics and medical instruments, iron and steel are imported into Russia. They are imported from such countries as China, Germany, USA, Belarus, Italy. The volume of foreign direct investment in Russia in 2015 amounted to 361 billion US dollars.