The service sector represents over 60% of Russian GDP. Like its neighbors in the old Europe, this market is mainly composed of financial services, IT, social, education and other public services.
The financial market is one of the largest segments in the sector, with the Moscow stock market (MICEX-RTS) as an engine renowned worldwide as a safe place and constantly growing. The last decision (January 2013) to create a single regulator in Russia aims to secure financial transactions and thus ensure the stability that markets are looking for. Moreover, the largest Eastern European bank, Sberbank, is in Russia and ranks third in Europe in terms of capitalization, although this is unknown to the Western public.
The second largest segment consists of the IT market, which is the second largest market after India, and plays a fundamental role in the Russian economy. After a fall in 2009, the IT market has resumed its growth to more than $ 35 billion in 2013 with a projection of 46 billion dollars for 2017. Even if Moscow is one of the most expensive cities in the world for cost of living, salaries for IT professionals are much lower than in the West. Russia is a very good destination for Western companies wishing to outsource or relocate their R & D centers.
The social, public and educational services, legacy of the communist past, are very present in Russia and represent the third largest segment of services. For example, despite the dispersion of the population on the vast territory, the literacy rate of the population is the highest in the world: 99.6%. There are over 600 public establishments of higher education that train specialists in over 500 different sectors.
Did you know?
- France is the first foreign investor in the financial sector
- Sberbank is the 3rd European Development Bank in terms of market capitalization
- Skolkovo is considered the Russian Silicon Valley
- BRICS launched in 2014 their own development bank