The Roscongress Foundation and Expert Rating Agency are set to publish a report titled ‘Economic health of
Russia’s regions: positive outlook.’ The report uses integral estimates to evaluate
current and future economic development of Russian regions in 2019. The project
is carried out as part of the cooperation between the Roscongress Foundation
and Expert RA.
The first edition of this project was presented last
year at the Russian Investment Forum in Sochi where Expert RA acted as an
Intellectual Partner of the Roscongress Case Zone.
“The Roscongress Foundation aims to promote regional
social and economic development. In this regard, this report is of great importance
to both regional governments and business communities – in other words to
everyone interested in the development of business activity in Russia. The
report provides an unbiased estimate of the current economic situation in the
regions and its potential,” said Alexander Stuglev, CEO and Chairman of the
Different regions have been evaluated against three
index groups: economic health of the population, regional business, and
consolidated regional budget.
Expert RA analysts point to a number of positive
trends that improved regions’ economic health in 2019. For instance, low inflation
and gradual wage growth contributed to people’s financial wellbeing. Growing
share of freed up funds allowed the population to purchase goods and services
outside the required minimum bracket. However, the underdeveloped regions
suffer from hurdles created by raising consumer prices, unemployment, and low
consumer activity per capita.
Regions that vigorously promote investment, possess
multiple efficient large companies and fairly developed small business find
themselves in the leaders of the current regional economic health rating.
Additionally, the leading regions demonstrate progress in real estate
construction. This can attest for popular demand, including attracting buyers
from neighboring regions, as well as for the presence of infrastructure in
construction, energy, finance, etc.
According to Expert RA, economic health of
consolidated budget is showing positive trends for two years in a row. Tax
collection is growing, albeit not as fast as the year before, yet the debt
servicing costs are going down. Regions have benefited from interest rate
decrease and diversified their credit portfolios.
“Integral estimates allow us to talk about positive
developments in the regional economic health. Correlation between top and bottom
of the list improved compared to the year before, despite the sustained high
differential in economic development and living standards,” said Gulnaz
Galieva, Senior Director for Corporte and Sovereign Ratings at Expert RA.
Top 10 regions have barely changed, yet some have
traded places. The leading regions include Moscow, Sakhalin and Tyumen Regions,
Yamalo-Nenets and Khanty-Mansi – Yugra Autonomous Areas, and St. Petersburg.
For the second year in a row the leading regions
showed positive dynamics. Noteworthy, those on the bottom of the list have also
demonstrated growth. Compared to the previous edition, this year’s rating included
two additional categories of economic health: moderately high and moderately
Index of regional economic development is used to
evaluate current development level in the Russian regions (current state map)
and to track changes (dynamics map). The map allows to see the differentiation
of regions according to the current development level. Dynamics map illustrates
which regions are improving, and which are not.
The report titled ‘Economic health of Russia's
regions: positive outlook’ is available in the ROSCONGRESS.ORG Information and