Top banker points to 'shameful imbalance in Russia's GDP

RT.com
26 May 2023, 23:44 GMT+10

The country's small- and medium-sized businesses make up just one-fifth of the economy

The head of Sber, Russia's largest state-owned lender, has called the small proportion of small- and medium-sized enterprises (SMEs) in the Russian economy "shameful."

Small businesses account for just one-fifth of the country's gross domestic product (GDP) and "it's a shame," Herman Gref said at a meeting of Opora Rossii, a non-governmental organization that represents the interests of SMEs.

He cited the example of China, where SMEs account for between 60% and 70% of the economy, adding that in the US and Finland small businesses account for around 60% of GDP, while this figure is over 70% in Italy.

In 2021, the contribution of SMEs to Russia's GDP was 20.3%, according to the national statistics agency Rosstat. It's expected that the output of smaller companies in the Russian economy will grow and reach 32.5% by 2024 under a series of national schemes designed to support SMEs.

Russia defines small- and medium-sized companies as businesses that employ fewer than 250 people, have annual revenues of under two billion rubles ($24.9 million), and meet certain ownership and corporate governance rules.

Experts say small businesses in Russia are more exposed to economic headwinds such as sluggish consumer demand and inflation, because they predominantly operate in the retail sector of the economy and rarely export to other countries.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to China National News.

More Information

null in null

Business

Section

Wall Street extends rally, Standard and Poor's 500 hits new high

NEW YORK, New York - U.S. stock markets closed firmly in positive territory to start the week Monday, with the S&P 500 and Dow Jones...

Canadian tax on US tech giants dropped after Trump fury

WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...

Trump-backed crypto project gets $100 million boost from UAE fund

LONDON, U.K.: A little-known investment fund based in the United Arab Emirates has emerged as the most prominent public backer of U.S....

DIY weight-loss drug trend surges amid high prices, low access

SAN FRANCISCO, California: Across the U.S., a growing number of people are taking obesity treatment into their own hands — literally....

Apple allows outside payment links under EU pressure

SAN FRANCISCO, California: Under pressure from European regulators, Apple has revamped its App Store policies in the EU, introducing...

Euro, pound surge as U.S. rate cut odds grow after Powell hint

NEW YORK CITY, New York: The U.S. dollar tumbled this week, hitting its lowest levels since 2021 against the euro, British pound, and...

Asia Pacific

Section