MOSCOW BY THE NUMBERS

ECONOMY

MOSCOW IS A LARGEST URBAN ECONOMY IN THE WORLD

The gross regional product (GRP) of Moscow is the main indicator characterizing the development and size of the city's economy. Over the past 8 years, it has grown by 11,2%, in comparable prices, and amounted to nearly than RUR 18 tn. This makes about RUR 1.4 m per capita, which is almost 2.5 times higher than the average Russian level.

In terms of GRP, the Moscow economy is the largest among the Russian Federation constituent entities: the capital accounts for one fifth of the country's total GRP.

Source: Rosstat, calculations of Moscow City Investment Agency


>17,9

tn RUR

Moscow GRP in 2018 (Rosstat)

+11,2

%

Moscow GRP growth in comparable prices for 8 years (estimated, Rosstat)

1,4

m RUR

GRP per capita in 2018 (Rosstat)

TOP

3

EUROPEAN CITIES

in terms of consumer spending in 2019 (Euromonitor International)


Moscow is one of the largest urban economies in the world in terms of GDP (purchasing power parity, PPP) and one of the top 5 global megalopolises according to this value. The Moscow GDP (PPP) in 2019 amounted to USD 1,125 bn, which is more than that of Seoul, Shanghai or Paris.
The head offices of most of the leading Russian companies, as well as the representative offices of many major foreign organizations operating in Russia are located in Moscow. Various media are widely represented in the Russian capital; diplomatic and commercial missions, the government bodies of the Russian Federation and representative offices of international organizations are located here.


LARGEST CONSUMER MARKET IN EASTERN EUROPE

The Moscow population makes more than 12 million people, or about 20 million taking into account the Moscow agglomeration. The consumer spending in Moscow in 2019 amounted to USD 197 bn. Moscow ranks No.3 among European cities and is included in the ranking of the world's twenty largest consumer markets.

INVESTMENTS

MOSCOW TOPS THE RUSSIAN INVESTMENT ATTRACTIVENESS RATING

In 2019, the volume of investments in fixed assets increased more than 2,3 times as compared to 2010, in comparable prices, and amounted to RUR 2.86 tn or 14.8% of the total investment in fixed assets in Russia.

SourceRosstat, calculations of Moscow City Investment Agency


Almost 74% of investments are financed with extrabudgetary funds, although the budget investments are also very important. The investments from the city budget help to support the PPP projects development and create multiplicative effects. Thus, the budgetary investments in transport and social infrastructure facilities provide for the improvement of the urban environment by stimulating the growth of private investment in the city economy. In the next three years, it is planned to open 27 new metro stations, build about 338 km of roads, 178 social infrastructure facilities, almost 1.1 million square meters of housing.

INVESTMENT PRIORITIES OF MOSCOW

Most of the investments in fixed assets in Moscow are used to develop a transport infrastructure and a comfortable urban environment: in the classification of investments according to the types of economic activities, the transport development accounts for 20.1%. In 2019, 19.7% of investments were used to develop the industry and high tech sector (manufacturing, information and communication, research and development).Real estate operations account for 10.6% of investments.

SourceRosstat, calculations of Moscow City Investment Agency


CENTER OF ATTRACTION FOR FOREIGN INVESTMENTS

The companies registered in Moscow account for almost 50% of foreign direct investments (FDI) received by Russia for 9 months of 2019. As of October 1, 2019, the foreign direct investments accumulated in the Moscow economy make USD 251.7 bn, including USD 166 bn (66%) as capital participation, and USD 86 bn (34%) as debt instruments. The industry-specific structure of investments is dominated by financial services & insurance (24%) and wholesale & retail trade (20%).A significant share is taken by professional, scientific and technical activities (15%) and real estate operations (10%).

Moscow offers a number of competitive advantages for foreign investors. First of all, it is a point of entry into the market of Russia and the CIS countries with a population of about 200 million people and access to export markets. In addition, investors in Moscow can gain access to high-quality labor resources and scientific and educational potential. The high-level development of information and communication technologies, the large capacity margin of communal infrastructure, the positive dynamics of the transport infrastructure and public space development, as well as the high quality of the urban environment also make the capital attractive to foreign investors.


According to the Financial Times (fDi’s European Cities and Regions of the Future 2020/21), rating of the European cities attractiveness for foreign direct investment, Moscow is in the TOP-10 in terms of investment attractiveness among the largest cities in Europe.

FINANCE

LARGEST REGIONAL FINANCIAL CENTER

More than half of active Russian credit institutions are concentrated in Moscow. The banks registered in Moscow account for more than 90% of Russian bank assets. Most of the headquarters of the foreign banks and international financial organizations operating in Russia are located here; almost all security exchange traders are concentrated In Moscow. The Moscow Exchange is one of the thirty largest exchanges in the world in terms of capitalization, and the largest stock market in the CIS and Eastern Europe in terms of the trading volume.


MEGALOPOLIS WITH A SUSTAINABLE CITY BUDGET

Moscow implements a well-balanced budget policy and is a leader among Russian regions in terms of the consolidated budget surplus and the tax policy effectiveness.

In 2019, the city budget revenues amounted to RU 2,630.9 bn, the expenses to 2,685.0 billion rubles, and the deficit to RUR 54.1 bn, respectively. The public debt dynamics are positive. As of 01.01.2020, Moscow’s public debt is RUR 30 bn, and the debt to budget revenue ratio excluding uncompensated receipts is 1.1%.


The Moscow budget expenditures expected in 2020 reach RUR 3.15 tn. The Moscow budget 2020 is socially oriented, so it is planned to spend more than RUR 1.3 tn on social needs. Moreover, significant funds will be allocated for the transport infrastructure development, namely the construction of new metro lines and the public transport network development.


MOSCOW CREDIT RATINGS

Internal
liabilities
External
liabilities
Outlook Note
Moody's Investors Service Baa3 Baa3 Stable 12.02.2019 Moody's upgraded Moscow's credit rating to Baa3 with a stable outlook on Moscow's credit rating.
Standard & Poor's BВB- BBВ- Stable 08.09.2019 Standard & Poor's affirmed Moscow's long-term credit rating as 'BBB-'; with a stable outlook.
Fitch Ratings BBB BBB Stable 10.04.2020 Fitch Ratings Affirms Moscow at 'BBB' with “Stable” Outlook

BUSINESS CONDITIONS

The Moscow Government is systematically working to improve the city business environment and increase the investment attractiveness. The business community representatives and foreign experts note the significant and systematic work carried out by the city authorities. Russia has improved its position and ranked No. 28 in the Doing Business 2020 international ranking of the World Bank (Doing Business 2020), Moscow contributing 70% thereto.

HIGH PERSONNEL POTENTIAL

Moscow is one of the largest cities in the world in terms of economically active population. The city labor force is over 7 million people. In addition, Moscow attracts the most competitive and skilled labor force from other regions of Russia and the world. In terms of labor costs, Moscow has an advantage over most of the world's megalopolises and is comparable to the megalopolises of South-East Asia and the capitals of Eastern Europe. In December 2019, the average hourly rate was USD 5.8

SourceRosstat


DEVELOPED MARKET OF COMMERCIAL REAL ESTATE

As of January 1, 2020, the total high-quality commercial space in Moscow is 45,1 million square meters. In 9 years, the growth of the Moscow high-quality commercial real estate market has increased by ca. 20 million square meters, i.e. 81% against 2010.

SourceKnight Frank

TRANSPORT

MOSCOW TRANSPORT JUNCTION IS THE MOST IMPORTANT LOGISTICS CENTER OF RUSSIA

The Moscow Air Cluster is the largest in Russia and includes five international airports, namely, Sheremetyevo, Domodedovo, Vnukovo, Ramenskoye, and the Ostafyevo business airport.

The passenger traffic at the three largest airports of the Moscow Air Cluster amounted to 96.2 million passengers in 2018, and exceeded 101,7 million passengers (+5.7%) in 2018.Moscow is one of the ten largest cities in the world in terms of the passenger number.

The Moscow railway junction is the largest in Europe and comprises 11 radial and 2 orbital lines, 9 stations, more than 50 cargo and sorting stations. The total track length is more than 2,700 km.

The ring road system located around Moscow unites 17 federal highway directions into a single transport network. In terms of road density, the Moscow region is comparable to such countries as Israel or South Korea.

In 2020-2022, the Moscow budget investment costs for the transport infrastructure development will amount to RUR 1.4 tn, i.e. about 67% of the Moscow Targeted Investment Program (TIP) budget. In 2020-2022, Moscow will allocate RUR 700.3 bn from the city budget for the metro development, under the Moscow TIP.

SourceMoscow Targeted Investment Program 2019-2021

CONVENIENT AND ACCESSIBLE PUBLIC TRANSPORT SYSTEM

Moscow there are about 950 land urban transport routes (including 13 night routes), and uses a new route network called Magistral intended to improve the convenience of daily downtown trips and reduce land transport traffic intervals, which includes three route types: main (21), district (17) and social (8).Moscow has 14 metro lines (408 km, 233 stations), and the Moscow Central Ring (54 km, 31 stations).The capital and satellite cities are interconnected by 11 suburban railway routes. As part of the construction of the Moscow Central Diameters connecting the radial railway lines, it is planned to arrange 5 train routes. The first two diameters are already launched at the end of 2019.

Moscow's significant advantage is a low public transport fair as compared to the largest megalopolises of the world. The of public transport fare in the Russian capital depends on the tariff and the number of trips and varies from RUR 33 to 57 per trip, which is significantly lower than in New York, Berlin or London.

SourceNumbeo

In January 2020, according to Rosstat, the cost of 95 RON motor gasoline in Moscow was RUR 46.9 per liter, which is less than in most megalopolises in the world.

SourceNumbeo

LIFE QUALITY

MEGALOPOLIS WITH A HIGH SECURITY LEVEL

In terms of security, according to the user data portal numbeo.com, Moscow is comparable to Berlin, and leaves New York, London, Paris and some other world’s major cities behind.

SourceNumbeo

CITY WITH EMPLOYMENT GUARANTEE

Moscow has a low unemployment rate, namely 2.1% (in 2018), which is less than in most other megacities of the world.

WIDE EDUCATION AND SELF-IMPROVEMENT OPPORTUNITIES

Moscow is a city with traditionally high educational potential. In 2019, 45 Moscow schools were included in the TOP-100 ranking of the best schools in Russia.

The Ministry of Education and Science of the Russian Federation has 153 higher educational institutions in Moscow (77 of which are non-state).3 Moscow institutions of higher education were included in the TOP-100 international teaching quality ranking of the Round University Ranking-2019 (Thomson Reuters).

SourceRosstat

ECOLOGY

Moscow forms a favorable urban environment, takes care of the ecological situation and citizens’ health. From 2010 to 2018, the polluted water discharge into the water bodies of Moscow decreased by 50% as compared to 2009.

Over the past 5 years, the water quality of the Moscow River has been recognized as “conditionally clean” at more than half of the testing points. Over the past 5 years, there has been a steady decrease in the water quality deterioration due to wastewater (almost two times, in general). Over the past 10 years, the oil content in the Moscow River within the city center has on average decreased by 20%.

SourceRosstat

Over the past 5 years, the pollutant content in the Moscow air has decreased by 10-33%, depending on the type. The significant improvement of the city's ecological situation became possible due to developing pedestrian areas and bicycle paths, improving public transport, introducing environmental requirements for downtown freight transport and paid parking lots. Moscow has announced the transition to environmentally friendly public transport, i.e. electric buses, starting in 2019.

In terms of air pollution, the Russian capital is comparable, for example, with Singapore and Paris, has cleaner air than Hong Kong, Tokyo and Istanbul and a higher pollution rate than New York, Sydney and London.

INDUSTRY REPORTS

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