GENERAL MARKET INFORMATION
Based on economic data, Russia's economy has stabilized
since 2010. In the first quarter of 2012, the real GDP has even grown by 4.9
percent, more than in the previous quarter; this growth derives from a dynamic
development of the domestic demand, which is pushed by an increase of wages due
to low inflation and a stable labor market. When approaching the presidential
elections in March, social spending has been increased as well. For 2012, a
growth of 3.4 percent is expected.
The construction industry continues to be a focal point of Russia’s
- In 2011, almost fifty percent of all investments went into the construction sector.
- The value of the rendered construction work grew by 5.1 percent to 124 billion USD.
- Residential construction grew by 6.6 percent to
62.3 million sqm and thus almost reached the record high of
2008. Although the built-up area grew by over six percent in the last
year, housing space remains to be scarce within the next few years.
- With 10.6 percent of all construction work rendered, the
city of Moscow represented the most important regional market in 2011.
- Industrial construction is the most dynamic sector with a growth rate of 75 percent.
- The highest backlog demand, however, remains in the transport
infrastructure. Almost 83,000 million USD are to be invested
in high speed routes between Moscow and St. Petersburg as well as
Nizhny Novgorod, Kazan and Yekaterinburg.
Major events like the soccer
world championship in 2018 and the development programs in many industries will
result in extensive business activities. Furthermore Russia’s entry into the World Trade
Organization (WTO) in 2012 has paved the way to further market liberalization.
Developments like these contribute to Russia's global financial and
economic integration and offer excellent business opportunities to
- Synopsis on Economic Trends in Russia by GTAI (Germany Trade and
- Exhibition report of the VDMA-German Engineering