What you need to know about Russian market.

Russian economy

Since 2000, Russia's economy saw the   nominal   Gross Domestic Product  (GDP) double, climbing from 22nd to 11th largest in the world. The economy made   real gains  of an average 7% per year (2000: 10%, 2001: 5.7%, 2002: 4.9%, 2003: 7.3%, 2004: 7.2%, 2005: 6.5%, 2006: 7.7%, 2007: 8.1%, 2008: 5.6%), making it the 6th largest economy in the world in   GDP(PPP). In 2007, Russia's GDP exceeded that of 1990, meaning it has overcome the devastating consequences of the soviet era,   1998 financial crisis, and preceding recession in the 1990s. On a per capita basis, Russian GDP was US$11,339 per individual in 2008, making Russians 57th richest on both a purchasing power and nominal basis.

Russian GDP(PPP) 2000-2007
Billions of international Dollars(2008)

Source: International Monetary Fund(http://www.imf.org)

2000-2007, investments increased by 125%,  and agricultural production and construction increased as well. Real incomes more than doubled and the average salary increased eightfold from $80 to $640. The volume of consumer credit between 2000–2006 increased 45 times,  and during that same time period, the middle class grew from 8 million to 55 million, an increase of 7 times. The number of people living below the poverty line also decreased from 30% in 2000 to 14% in 2008.

2008-2009 (Global financial crisis)

The recent global economic downturn has resulted in three major shocks to Russia's long-term economic growth, though.   Oil  prices dropped from $140 per barrel to $40 per barrel, a decrease in access to financing with an increase in sovereign and corporate bond spreads, and the reversal of capital flows from $80 billion in in-flows to $130 billion in out-flows have all served to crush fledging Russian economic growth. In January 2009, industrial production was down almost 16% year to year, fixed capital investment was down 15.5% year to year, and GDP  had shrunk 9% year to year. [23] However, in the second quarter the GDP rose by 7.5 percent on a quarterly basis indicating the beginning of economic recovery.

Russian internet(Runet)

38,000,000 Internet users as of Dec/08, 27.1% penetration, according to POF.
Russia has the fastest growing Internet population in Europe, followed by France and Spain. In a comparison of 16 European Internet populations by country, comScore reports that Russia’s Internet audience for the month of June 2008 grew 27 percent year over year, compared to 21 percent growth in France and 15 percent growth in Spain.

Yandex

Yandex is a Russian search engine and the largest Russian Web portal was launched in 1997. According to research studies conducted by TNS Yandex is the largest resource and largest search engine in Russian Internet, based on the audience size and internet penetration. The closest competitors of Yandex in the Russian market are Rambler and Mail.ru. Although services like Google are also used by Russian users and have Russian-language interfaces, Google has about 22.6% of search engine generated traffic, whereas Russian sites (including Yandex) have around 56.9%. One of the Yandex's largest advantages for Russian-language users is recognition of Russian inflection in search queries

 



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