Russia Economic Outlook - CETOP European Fluid Power

Hague, The Netherlands31 st May 2013Anton Sitnikov

GDP figures• GDP (purchasing power parity)$2.509 trillion (2012 est.)$2.422 trillion (2011 est.)$2.322 trillion (2010 est.)• GDP (official exchange rate)$1.954 trillion (2012 est.)• GDP ‐ real growth rate3.6% (2012 est.)4.3% (2011)4.3% (2010)• GDP ‐ per capita (PPP)$17,700 (2012 est.)$17,000 (2011 est.)$16,300 (2010 est.)• GDP ‐ composition by sectoragriculture: 4.4%industry: 37.6%services: 58% (2012 est.)

Social development• Population below poverty line13.1% (2010)• Labor force75.24 million (2012 est.)• Labor force ‐ by occupationagriculture: 9.8%industry: 27.5%services: 62.7% (2010)• Unemployment rate6.2% (2012 est.)6.6% (2011 est.)• Household income orconsumption by percentagesharelowest 10%: 2.8%highest 10%: 31.7% (2009 est.)• Distribution of family income ‐Gini index42 (2010)39.9 (2001)

Finance and budget• Investment (gross fixed)23.2% of GDP (2012 est.)• Budgetrevenues: $413 billionexpenditures: $414 billion (2012est.)• Budget deficit ‐0.1% of GDP(2012 est.• Industrial production growthrate (4.7% (2011 est.)• Public debt11% of GDP (2012 est.)8.3% of GDP (2011 est.)Debt ‐ external$455.2 billion (31 Dec 2012 est.)$538.6 billion (31 Dec 2010 est.)• Inflation rate5.3% (2012 est.)8.4% (2011 est.)

World tradeExports$542.5 billion (2012 est.)$520.3 billion (2011 est.)Imports$358.1 billion (2012 est.)$322.3 billion (2011 est.)Others67%Netherlands12%China6% Italy6%Germany5%Poland4%Others64%China15% Germany10%Ukraine7%Italy4%petroleum and petroleum products,natural gas, metals, wood and woodproducts, chemicals, and a wide varietyof civilian and military manufacturesmachinery, vehicles, pharmaceuticalproducts, plastic, semi‐finished metalproducts, meat, fruits and nuts, opticaland medical instruments, iron, steel

Conclusions• Current account was strong thanks to a large surplus in the trade balance and capitaloutflows declined, allowing the Central Bank of Russia to replenish its reserves.• Average public debt in advanced economies exceeds 110 percent of GDP, Russia’s publicdebt is no more than 10 percent of GDP.• Unemployment dropped to 5.4 percent in January 2013, a record low for the last twodecades, and wages grew at a solid pace, number of poor people decreased from 16.9million in 2012 to 15.9 million in 2014.• Growth 3.4% in 2012, down from 4.3 % in 2011. Growth will slow further to 3.3 % in 2013,and then is set up to pick up modestly to 3.6 percent in 2014.• Russia is also stagnating in global economic rankings. Russia did improve globally from18th to 8th position between 2000 and 2008, but it remained in this position in 2012.• Growth declined mainly due to the weaker performance of investment.• Inflation continues to be high. Headline year‐on‐year inflation reached 7.1 percent inJanuary 2013, compared to 4.2 percent in January 2012.• By 2014, growth in Russia is set to be once again lower than in Brazil, South Korea, andTurkey.

Fluid Power Association Russia• Executive Director – Mr Igor’ Tulskiy• 2006 foundation in Moscow• 2008 Safety & Quality Diploma• 2008 member of Russian Machine‐Builders Union• 2009 member of CETOP• 20 members: R&D companies, hydraulics makers, salescompanies, service workshops, fair organizers• Joint R&D projects, show participation, legal support…

FPA share in hydraulics Russian marketOthers 57%FPA 43%

Hydraulics –sales44.600.000€39.600.000€34.600.000€29.600.000€24.600.000€19.600.000€14.600.000€9.600.000€200820092010201120122013 fc4.600.000€

Hydraulics –new orders200820092010201120122013

FPA contacts• Executive Director ‐ Mr Tulskiy: 007 495 785‐65‐15 add 253• Deputy Executive Director ‐ Mr Sitnikov: 007 495 785‐65‐75 add 231• 29A, Sevanskaya Str., Moscow, 115516, Russia• www.apgo2006.ru• fpa07@mail.ru

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