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

RT.com
27 May 2023, 04:14 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 Philadelphia Herald.

More Information

74 ℉

Mostly Cloudy in Philadelphia

Business

Section

Nasdaq Composite leads U.S. stocks higher, gains 134 points

NEW YORK, New York - U.S. stocks moved higher Thursday as investors and traders took a break from their recent ...

As Portugal sells TAP airlines, Lufthansa says too early for buyout

LISBON, Portugal: Carsten Spohr, Chief Executive of Lufthansa, has said that as Portugal's government is still debating whether to sell ...

Technology stocks falter as Dow Jones maintains the course

NEW YORK, New York - U.S. stocks were divided on Wednesday, with the technology and industrial sectors parting ways.Tech stocks ...

Industry watching as new Spider-Man movie takes in $120.5 million

HOLLYWOOD, California: More than tripling the debut of its 2018 animated original predecessor, Sony Pictures' "Spider-Man: Across the Spider-Verse" opened ...

Airbus awaits record 500 jet order from IndiGo

PARIS, France: European plane manufacturer Airbus is reported to be close to a record agreement to sell 500 narrow-body jets ...

US companies to pay $1.18 billion for chemicals in water

TRAVERSE CITY, Michigan: DuPont, Chemours and Corteva have reached an agreement to pay $1.18 billion to resolve complaints of causing ...

International

Section