Investment in Moscow: Investment climate factors

Moscow is the largest consumer market in Russia and Eastern Europe

Moscow is estimated to  have a population of more than 12 million people, and when the Moscow agglomeration is taken into account, this increases to more than 16 million, or 11% of Russia’s overall population (15th place in the world according to population numbers of urban agglomerations). 
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Population of urban agglomerations in 2015 (million people)

Source: Demographia World Urban Areas.

Through the volume of its consumer spending (USD 217 bn in 2014), Moscow has taken 3rd place amongst European cities and 14th place globally.
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Consumer spending in world cities in 2014 (USD bn)

Source: Euromonitor International

The volume of retail trade turnover for Moscow in 2014 exceeded 4.4 trillion roubles (USD 115 bn).

Moscow accounts for 17% of the Russian retail trade sector’s turnover. 
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Geographical structure of Russia’s retail trade turnover in 2014 (%)

 

Source: Rosstat, calculations by Moscow City Investment Agency

High level of household incomes

According to the 2014 results, the average per capita incomes in Moscow is around 55,000 roubles per month (USD 1430) and the average for Russia is around 28,000 roubles (USD 720).
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Average per capita income in 2014 USD*/month

*According to average US dollar exchange rates from the Bank of Russia .
Source: Rosstat.

In terms of the average annual disposable income from households, when compared internationally Moscow is comparable with Sao Paolo and Istanbul and is ahead of Eastern European cities such as Prague or Warsaw.
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Average annual disposable income for households in world cities in 2014 (USD)

Source: Euromonitor International.

The volume of individual deposits in credit institutions in Moscow as of 1 January 2015 is around RUB 570,000 (USD 10,000) per capita.
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Volume of individuals’ deposits per capita as of 1 January (in RUB thousands)

Source: Bank of Russia, calculations by Moscow City Investment Agency

Sustained effective demand

The money spent by the population in Moscow has grown at a stable rate; the average annual growth rate over the last 4 years is around 9% per year.
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Money spent by the population in the city of Moscow (RUB trln)

Source: Mosgorstat.

A faster growth in real wages is relative to the growth of the retail trade turnover (25% and 15% respectively in 2014, compared to 2010 in real terms).
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Real wages and the growth rate of the retail trade turnover, % by 2010

Source: Rosstat, calculations by Moscow City Investment Agency

Moscow is characterized by a relatively low level of the population’s credit exposure (the ratio of outstanding loans to the volume of individuals’ deposits by 1 January 2015 is approximately 19%).
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The ratio of individuals’ outstanding loans to the volume of individuals’ deposits as of 1 January 2015, %

Source: Bank of Russia, calculations by Moscow City Investment Agency

Population of metropolitan areas in 2015 (million people)

Source: Demographia World Urban Areas.

Source: Demographia World Urban Areas.

Consumer spending in global cities in 2014 (USD bn)

Source: Euromonitor International.

Geographical structure of Russia’s retail trade turnover in 2014 (%)

Source: Rosstat, calculations by Moscow State Investment Agency

Average per capita income in 2014 USD*/month

*According to average US dollar exchange rates from the Bank of Russia
Source: Rosstat.

Average annual disposable income for households in global cities in 2014 (USD)

Source: Euromonitor International.

Volume of individuals’ deposits per capita as of 1 January (in RUB thousands)

Source: Bank of Russia, calculations by Moscow City Investment Agency

Money spent by the population in the city of Moscow (RUB trln)

Source: Mosgorstat.

Real wages and the growth rate of the retail trade turnover, % by 2010

Source: Rosstat, calculations by Moscow City Investment Agency

The ratio of individuals’ outstanding loans to the volume of individuals’ deposits as of 1 January 2015, %

Source: Bank of Russia, calculations by Moscow City Investment Agency