Moscow's Economic Outlook

Moscow is the capital, as well as the political, financial, economic, scientific and educational center of the Russian Federation. Leading business and financial organizations, and representative offices of the largest Russian and international companies are located in Moscow.

Moscow is among ten largest metropolitan areas in the world in terms of gross regional product (GRP). It accounts for one-fifth of gross value added of all Russian regions. Moscow’s economic structure is similar to the GRP structure of large urban agglomerations. The largest contribution to the city’s GRP is provided by the trade sector (31.3% of GRP) and the provision of business services (21.2% of GRP). Industry accounts for 18.6% of gross value added (including manufacturing – 14.9%).
 
Moscow – the biggest consumer market in Russia and Eastern Europe The population of Moscow agglomeration surpasses 16 million people (making it the 15th largest urban agglomeration in the world), and if the Moscow region is included, the population reaches around 20 million people. That is 14% of the population of Russia. Moscow ranks third among European cities and 14th in the world in terms of consumer expenditure. Moscow accounts for 20% of the Russian retail trade turn over. 

In 2017, Moscow was included in the TOP-3 investment climate quality ranking of Russian regions and took the first place in the Public-Private Partnership Development Ranking.

In 2016, the volume of investments in fixed assets grew by 55.6% against 2010 in comparable prices, and according to the results of the first half of 2017, it increased by 19.3% against the corresponding period of 2016 and amounted to 658.2 billion rubles. Moscow accounts for about 11.5% of the total investments in fixed assets in Russia.

The attraction of private investments is stimulated by project support measures by assigning special statuses, granting tax benefits, subsidies and the possibility to conclude offset contracts with the Moscow Government.

The city is actively developing. High budgetary security combined with a low public debt level (about 1% of GRP) allows to make large state investments in the development of transport and social infrastructure, education and health. In 2017-2019, the city Targeted Investment Program (TIP) will account for over 1.4 trillion rubles.

In 2016, the Moscow budget expenses exceeded 1.7 trillion rubles or 26 billion dollars. According to this indicator, Moscow is one of the largest megacities in the world. The Moscow budget exceeds the budget of Los Angeles (USA) almost 3 times and that of Paris (France) more than 2 times, and is comparable to the budget of London (Great Britain).

In 2016, the investment costs of the Moscow budget reached almost 420 billion rubles or 6.3 billion dollars.

Source: https://en.investmoscow.ru

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