The gross regional product (GRP) of Moscow is the main indicator characterizing the development and size of the city's economy. Over the past 11 years, it has grown by 23%, in comparable prices, and amounted to nearly than RUR 24.5 tn. This makes about RUR 1.9 m per capita, which is almost 2.3 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
Moscow GRP in 2021 (Rosstat)
Moscow GRP growth in comparable prices for 11 years
GRP per capita
Moscow GRP in 2021
Moscow GRP growth in comparable prices for 10 years
GRP per capita
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 2021 amounted to USD 25.500 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.
Source: Rosstat (https://rosstat.gov.ru/)
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 2022 amounted to USD 413 bn. Moscow ranks No.3 among European cities and is included in the ranking of the world's twenty largest consumer markets.
Source: Rosstat (https://rosstat.gov.ru/)
In 2022, the volume of investments in fixed assets increased more than 3,5 times as compared to 2010, in comparable prices, and amounted to RUR 5.9 tn or 21.2% of the total investment in fixed assets in Russia.
Source: Rosstat (http://www.gks.ru), calculations of Moscow City Investment Agency
Almost 71% 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 286 km of roads, 249 social infrastructure facilities, almost 950 thousand square meters of housing.
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 19.5%. In 2021, 19.9% of investments were used to develop the industry and high tech sector (manufacturing, information and communication, research and development). Real estate operations account for 10.2% of investments.
Source: Rosstat (http://www.gks.ru), calculations of Moscow City Investment Agency
The companies registered in Moscow account for almost 50% of foreign direct investments (FDI) received by Russia. The foreign direct investments accumulated in the Moscow economy make USD 249.5 bn, including USD 200.2 bn (80,2%) as capital participation, and USD 49.3 bn (19,5%) as debt instruments. The industry-specific structure of investments is dominated by financial services & insurance (29.2%).A significant share is taken by professional, scientific and technical activities (21.9%) and real estate operations (9.9%).
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 287 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.
Source: Central Bank of Russia (https://www.cbr.ru)
According to the Financial Times (fDi’s European Cities and Regions of the Future 2021/22), rating of the European cities attractiveness for foreign direct investment, Moscow is in the TOP-25 in terms of investment attractiveness among the largest cities in Europe.
More than half of active Russian credit institutions are concentrated in Moscow. The banks registered in Moscow account for more than 78% 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.
Source: Central Bank of Russia (https://www.cbr.ru)
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 2022, the city budget revenues amounted to RU 3,654.4 bn, the expenses to 3,601.2 billion rubles, and the deficit to RUR 53.2 bn, respectively. Moscow’s public debt is RUR 236.2 bn, and the ratio of the debt to tax and non-tax revenues of the budget is 6.6%.
Source: Open budget of Moscow (https://budget.mos.ru/)
The Moscow budget expenditures expected in 2023 reach RUR 4.2 tn. The Moscow budget 2023 is socially oriented, so it is planned to spend more than RUR 1.9 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 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. The average monthly wage at the end of 2022 was $1,303.3.
Source: Rosstat (http://www.gks.ru)
The total volume of quality commercial real estate in Moscow increased to 55,5 mln. sq.m. For 11 years the volume of supply on the market of quality commercial real estate in Moscow has more than doubled, the growth was about 30,6 mln. sq.m.
Source: Knight Frank (ttps://www.knightfrank.ru)
The Moscow Air Cluster is the largest in Russia and includes five international airports, namely, Sheremetyevo, Domodedovo, Vnukovo, Ramenskoye, and the Ostafyevo business airport. In terms of the number of serviced air passengers, Moscow is one of the ten largest cities in the world.
The passenger traffic at the three largest airports of the Moscow Air Cluster amounted 66 million passengers. 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.
Investment expenditures of Moscow budget for transport infrastructure development in 2023-2025 will amount to almost 1,3 trillion rubles, or about 57.5% of the budget of the Addressed Investment Program of Moscow (AIP).
Source: >Moscow Targeted Investment Program 2023-2025
Moscow there are about 700 land urban transport routes (including 16 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 (412.1 km, 236 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 46 per trip, which is significantly lower than in New York, Berlin or London.
Source: Numbeo (www.numbeo.com)
In 2022, according to Rosstat, the cost of 95 RON motor gasoline in Moscow was RUR 53.08 per liter, which is less than in most megalopolises in the world.
Source: Numbeo (www.numbeo.com)
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.
Source: Numbeo
Moscow is a city with traditionally high educational potential. In 2022, 64 Moscow schools were included in the TOP-200 ranking of the best schools in Russia.
The Ministry of Education and Science of the Russian Federation has 146 higher educational institutions in Moscow (69 of which are non-state). 4 Moscow institutions of higher education were included in the TOP-100 international teaching quality ranking of the Round University Ranking-2022 (Thomson Reuters).
Source:Rosstat
Moscow forms a favorable urban environment, takes care of the ecological situation and citizens’ health. From 2010 to 2021, 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 10 years, the oil content in the Moscow River within the city center has on average decreased by 20%.
Source:Rosstat
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.
Source: World Health Organization (https://www.who.int)
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