Sergei Sobyanin: Economy of Moscow is growing steadily
Moscow’s economy is growing steadily as its performance in 2023 is quite outstanding in modern history, as stated by Moscow Mayor Sergei Sobyanin at the meeting with President of Russia Vladimir Putin.
In 2021–2023, investment in fixed assets amounted to RUB 17.8 trillion.
“If you look at what happens to investment – of course, it varies year from year – but if you take larger periods, three-year periods, for example, from 2009 to 2011, our investment grew from 2 trillion to 17 trillion. Even in comparable prices this is 3.7 times more. This applies to housing, buildings, purchased machinery, and equipment, and intellectual property,” said the Moscow Mayor.
The driver is Moscow’s manufacturing; in 2023, the capital set an absolute record for the growth of manufacturing (ex oil processing) — 22.3 per cent, which is due to rapidly increasing high-tech production capacity.
“There is a robust growth for all indicators, for crucial production indicators such as pharmaceuticals, automotive industry and microelectronics — 25 to 40 per cent. The growth of investment in real estate, commercial property and housing construction continues. We are also progressing with the renovation program,” Sergei Sobyanin said.
In 2023, local industrial enterprises shipped goods worth of RUB 10.6 trillion, which is 55 per cent more (in comparable prices) than in 2016, while gross value added (GVA) of Moscow’s processing plants in the national industry-related GVA increased from 16 to 25 per cent in the same period.
The production of clothing grew 3.5 times, with a 2.1 times growth in electrical equipment outputs; key sectors, such as pharmaceuticals (+ 40 per cent), automotive industry (+ 40.4 per cent) and microelectronics (+ 25.2 per cent) are also on the rise.
“Moscow is not just one of the regions; it is the capital. This is the center of science, education, and manufacturing. Therefore, all of this is closely interconnected with the entire economy of Russia,” said Vladimir Putin.
The largest hub of domestic microelectronics is Zelenograd, which is a venue for some major projects run at Technopolis Moscow Special Economic Zone (SEZ), these including production of photon integral circuits, microelectronic components, and photomasks. Indeed, the Moscow Government plans to boost microelectronics, the total investment to amount to almost RUB 184 billion until 2028.
Unmanned aviation grows rapidly, too, a new site in Technopolis Moscow SEZ, the Rudnevo Industrial Park, being its beacon as, by order of Vladimir Putin, it became home to the Federal Center for Unmanned Aircraft Systems and the nation’s first-ever Center for Collective Use. In the future, the former is to get a lab to run aerodynamic and digital testing of drone technologies, flight-test grounds for experimental drones and light civilian helicopters, plus an education center.
In 2023, the authorities kicked off a construction project for Russia’s inaugural Li-Ion battery gigafactory for electric vehicles in Krasnaya Pakhra (TiNAO), intended to be the biggest related enterprise in the country, part of the greatest effort to create and develop the Moscow E-Vehicle Cluster, which is taken by the local authorities by order of Vladimir Putin as well. They would start producing products for electric buses, electric cars, primarily the Moskvitch brand, and other types of electric vehicles in 2025.
An important indicator of high economic activity in Moscow is the growth of development projects, with 44.8 million square meters of real estate introduced in 2021–2023, which is 3.7 times more than in 2009–2011. They built 15.4 million square meters of real estate in 2023.
Housing (21.9 million square meters in 2021–2023, including 7.3 million square meters in 2023) accounts for about one half, while the rest is social facilities and commercial real estate, which is a crucial source of new jobs (e.g., science parks, production facilities, office buildings, shopping malls, kindergartens, schools, clinics, etc.). The total investment under the program for stimulating new jobs is expected to exceed RUB 1 trillion.
The Moscow Government also prioritizes projects to relocate Muscovites from uncomfortable and dilapidated housing, over 150,000 people have been or being resettled, another 350,000 program participants to get their cozy homes by 2027.
