Over the last three quarters of 2018, the level of fixed investments in Moscow has reached 1.2 trillion roubles, which is 5.6 percent more than the figure for the same period in 2017.
According to Moscow Statistics Service, the share of extra-budgetary investments has grown as well. Between January and September, 2018, it has increased by 4 percent to a total of 73 percent.
“Moscow’s industrialists and business people are now actively investing to increase production and update the equipment,” said Vladimir Yefimov, Deputy Mayor for Economic Policy and Property and Land Relations and Head of Moscow’s Department for Economic Policy and Development. “The volume of investment in vehicles, equipment and objects of intellectual property has increased. Today, Moscow is building an optimal environment for the development of industry, which marks a new stage in Moscow’s industrial development.”
Business people themselves are now investing more often in their own businesses. This is facilitated by the tax exemptions and subsidies that the Moscow Government provides to enterprises, allowing them to save money and invest in further development.
Moscow is now focusing on increasing the attractiveness of industrial and high technology sector investments, said Head of the Department for Investment and Industrial Policies Alexander Prokhorov.
“The level of mutual trust between the city and business keeps growing,” Prokhorov said. “It is, without a doubt, one of the factors contributing to the growth in fixed investments and the continuing high level of extra-budgetary investments. We see that business people are now less prone to using bank loans or budgetary funds, and are increasingly using their own resources for investment.”
The Moscow Agency for Investment Management offers help to city entrepreneurs. It works on a one stop shop principle, and its experts are there to support entrepreneurs in the implementation of investment projects. The agency creates the necessary economic and legal environment for the projects while taking into account the best interests of the city and its entrepreneurs. It also introduces systemic measures to improve Moscow’s investment climate.
In 2019-2021, Moscow’s socioeconomic development indicators are expected to improve even more with increased industrial output, gross regional product, retail turnover and supply of marketed services, and three to seven percent investment growth per year.