- Language: English
- Published: May 2015
- Region: Russia
Economic 360 for Russia: Growth Prospects and Emerging
- ID: 1505594
- December 2010
- Region: Russia
- 101 Pages
- Frost & Sullivan
Russia is commonly accepted as one of the most promising markets in eastern Europe and is expected to be one of the fastest growing among the BRIC (Brazil, Russia, India and China) countries. It is currently the eleventh-largest economy and the ninth most populous country in the world with increasing income and purchasing parity. To keep pace with such growth, the Government is focusing on modernizing the economy and consequently, rolling out many initiatives for the information and communications technology (ICT) industry. Some of these include the establishment of Electronic Russia (E-Russia), building technoparks (at least four, the first one in Skolkovo, near Moscow, is currently under construction), creating an information society and improving outdated ICT infrastructure. Despite having a solid scientific base, a significant number of scientists and researchers and high-quality tertiary education, Russia lags behind western Europe in technological development due to inadequate investments. The inflow of foreign direct investment (FDI) is improving. However, most of it is focused on the heavy manufacturing and extraction industries. The Government is expecting a more balanced funding
and working on improving the business environment, law and regulations in the ICT industry.
The political climate in the next five years is expected to be stable and will not hinder the economic growth of the country. The Government has unified its fiscal and monetary policy commitments to promote economic growth and reduce the levels of unemployment to about 6.5 per cent in 2011. It is also looking to improve its regulatory environment to encourage higher levels of FDI. Analysis reveals that the European Union accounted for 52 per cent of Russia’s trade and therefore, the country is likely to join the World Trade Organisation (WTO) soon to co-ordinate its trade regulations with the WTO member states and raise its trade turnover. Although Russia’s share of petroleum exports reached 74 per cent in 2009 due to increasing global demand for oil and gas, it is working on the diversification of its trade structure to hike the export share of high-tech and high value-added production and services.
In 2009, the Russian Government was the biggest client of the ICT industry, accounting for nearly 15 per cent of the total demand. Russians have quickly adopted technology, as is evidenced by the rapid rise in the Internet penetration rates. The Russian ICT industry reached $50.00 billion in 2009 with a compound annual growth rate (CAGR) of 15.0 per cent between 2004 and 2009, and is forecast to grow at the same pace until 2014. The ICT industry is creating many growth opportunities in the sectors of mobile phone software and devices, broadband services and devices, digital TV, multimedia services, e-commerce, advanced ICT technologies as well as software and hardware. There is potential to leverage increasing exports of software due to the rising revenues from software outsourcing. The liberalisation of the long-distance connections market also provides private companies with an opportunity to offer telecom services.
Frost & Sullivan’s Information and Communication Technologies Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its ICT industry. Apart from enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.
The following benefits are offered by this research:
Identify New Industry Opportunities
The future trends and developments in the Russian ICT industry have been identified by taking into consideration the economic environment of the country. The analysis will prove greatly informative to industry participants and those with vested interests in the ICT industry in Russia.
Understand Future Industry Trends
This research service provides deep insights into the economic developments and trends in the Russian ICT industry. The economic environment as well as industry and infrastructure developments will provide a greater insight into the dynamics of the industry during the forecast period.
Comprehend Policy and Economic Environment
An analysis of the dynamics of economic growth in Russia provides considerable information about the economic parameters that will influence the ICT industry in the country. Industry performance is closely related to the level of economic growth, and the structural dynamics of the economy are revealed to provide valuable inputs to industry participants.
Evaluate Industry Potential
This research service focuses on providing an analysis of country and industry trends and is well suited to provide information to companies seeking to enter new geographic markets. The industry and economic insights will also prove invaluable to corporate planners in the development of accurate business plans or allocation of resources. SHOW LESS READ MORE >
1 | ECONOMIC 360 FOR RUSSIA , ECONOMIC 360 FOR RUSSIA: GROWTH PROSPECTS AND EMERGING OPPORTUNITIES IN THE ICT INDUSTRY
- Economic 360 Perspective for Russia: Growth Prospects and Emerging Opportunities for the ICT Industry
- - 1. Economic 360 Perspective for Russia: Growth Prospects and Emerging Opportunities in the ICT Industry