important drivers of this
economic rebound, since 2000 investment and consumer-driven demand
have played a noticeably increasing role. Real fixed capital
investments have averaged gains greater than 10% over the last four
years and real personal incomes have averaged increases over 12%.
Russia has also improved its international financial position since
the 1998 financial crisis, with its foreign debt declining from 90%
of GDP to around 28%. Strong oil export earnings have allowed Russia
to increase its foreign reserves from only $12 billion to some $80
billion. These achievements, along with a renewed government effort
to advance structural reforms, have raised business and investor
confidence in Russia's economic prospects. Nevertheless, serious
problems persist. Oil, natural gas, metals, and timber account for
more than 80% of exports, leaving the country vulnerable to swings
in world prices. Russia's manufacturing base is dilapidated and must
be replaced or modernized if the country is to achieve broad-based
economic growth. Other problems include a weak banking system, a
poor business climate that discourages both domestic and foreign
investors, corruption, local and regional government intervention in
the courts, and widespread lack of trust in institutions. In
addition, a string of investigations launched against a major
Russian oil company, culminating with the arrest of its CEO in the
fall of 2003, have raised concerns by some observers that President
PUTIN is granting more influence to forces within his government
that desire to reassert state control over the economy.

GDP:
purchasing power parity - $1.282 trillion (2003 est.)

GDP - real growth rate:
7.3% (2003 est.)

GDP - per capita:
purchasing power parity - $8,900 (2003 est.)

GDP - composition by sector:
agriculture: 5.2%
industry: 35.1%
services: 59.8% (2003 est.)

Investment (gross fixed):
18.2% of GDP (2003)

Population below poverty line:
25% (January 2003 est.)

Household income or consumption by percentage share:
lowest 10%: 5.9%
highest 10%: 47% (2001)

Distribution of family income - Gini index:
39.9 (2001)

Inflation rate (consumer prices):
13.7% (2003 est.)

Labor force:
71.68 million (2003 est.)

Labor force - by occupation:
agriculture 12.3%, industry 22.7%, services 65% (2002 est.)

Unemployment rate:
8.5% plus considerable underemploymen