DEVELOPMENT CHALLENGES
Between the financial crisis that struck Russia in 1998 and the global financial crisis in 2008-2009, Russia experienced the strongest decade of growth in its history. On average, GDP grew by nearly 7% annually over this period. A solidly “upper-middle” income country, Russia’s GNI per capita has grown steadily, from US$5,820 in 2006 to US$9,910 in 2010. The country also has a “high” Human Development Index (HDI) of 0.755, placing it in 66th place of 187 countries. However, the global financial crisis was severely felt in Russia, due to overlapping internal and external factors, and reduced the long-term trajectory of the Russian economy. The country therefore continues to face some development challenges.
- Poverty and inequality
- High unemployment and a large gender pay gap
- Skills gap
- Inefficient public administration and a large informal sector
- Environmental issues
KEY TRADE ISSUES
- Product concentration and low productive capacity
- WTO accession and regional integration
- Limited access to finance
- Cumbersome regulatory and business environment
GOVERNMENT PRIORITIES
The Government is currently developing the concept of Russia’s Social and Economic Development up to 2020.
The Government’s priorities are to:
- Overcome the global financial and economic crisis;
- Support pensioners and low-income families;
- Implement macroeconomic and youth policies;
- Provide affordable housing;
- Encourage a healthy lifestyle;
- Develop the space and defence industries;
- Reduce excessive administrative barriers;
- Promote sports and culture;
- Fight against drought and wildfires;
- Support agricultural development
- Support small and medium business;
- Develop infrastructure;
- Ensure regional development; and
- Integrate the country into the global economy.
More detailed information on the Russian Federation can be found here.