The share of exports in the Russian economy has decreased to its lowest level since the 1990s

The share of exports of goods and services as part of Russian GDP in 2023 reached a record low since at least 2011. This year, the methodology for calculating GDP was changed, which increased nominal GDP by 7-9%. But according to Rosstat data calculated according to the old methodology, the share of exports has become the lowest since 1995.

In 2023, exports accounted for 23.3% of GDP, compared with 27.7% in 2022. The average share in the period from 2011 to 2022 was 27.5%. According to the Bank of Russia, exports of goods and services in 2023 amounted to $465.4 billion, which is 27% less than in 2022. Of these, $424 billion is accounted for by exports of goods.

Net exports, which are a component of the GDP formula, amounted to 4.3% of GDP, which was the lowest value since 1997. In 2023, imports recovered from 15% in 2022 to 19%, although they consistently exceeded 20% between 2011 and 2021.

The reasons for this decline include a decrease in the dollar value of Russia's main exports, as well as the impact of sanctions on exports of goods from the Russian Federation. It should be particularly noted that pipeline gas supplies to Europe previously accounted for 8% of Russia's GDP, but now this export is absent.

In the current situation, this is more of a negative moment than a positive one. The domestic market is becoming more important for the Russian economy, but it is not able to fully compensate for the production potential of Russian companies. Russia simply does not need so much oil, fertilizers and metals.