Budgetary progress: Moscow's share in the Russian economy has exceeded 21%

The Russian capital is showing good performance in almost all areas: Moscow's share in the country's economy has completely exceeded 21%, and this is without taking into account the financial sector. Vladimir Putin said this on May 5 at a meeting with the mayor of the city, Sergei Sobyanin. Over the past year, according to the mayor's estimates, the capital's economy has added 5.5%, and in six years it has increased by a whole quarter, despite sanctions and the pandemic. The city is also actively developing programs for the reconstruction and repair of schools, clinics and hospitals, and the restoration of hospitals will be completed this year. In addition, Moscow will continue to support Lugansk and Donetsk: the capital's specialists have already reconstructed over 2,000 facilities and restored more than 1,000 km of engineering networks. What is the average life expectancy of Muscovites and which city has surpassed the Russian capital in terms of purchasing power parity — in the Izvestia article.

What is Moscow's contribution to the Russian economy

Vladimir Putin met with Sergei Sobyanin in the Kremlin on May 5. The Head of State immediately noted the successes of the capital, and in almost all areas. The figures also confirmed this: according to the mayor's estimates, Moscow's economy has grown by 5.5% over the past year, and by a quarter in six years, despite sanctions and the pandemic. He drew attention to the fact that Moscow's share in the Russian economy already exceeds 21%. Moreover, this figure does not take into account the financial sector, Sergei Sobyanin added.

— After all, we are the financial center of the country, and when GRP is considered, the financial sector is not considered, but we have about 600 thousand people working there, a significant sector of the economy. But even so, the share is quite large," the mayor explained.

Vladimir Putin noted the success of investments. Sergei Sobyanin confirmed that the capital is showing good dynamics, in six years they have doubled in almost all industries at comparable prices. In addition, manufacturing and industrial production are growing in the capital. The turnover of Moscow's high-tech industries, which accounts for about a third of the country's industry, has also tripled, Sergei Sobyanin noted.

— Moscow has become an example not only for Russian cities in achieving a comfortable environment for residents and guests of the capital, but also for all capitals of the world. However, it does not stop in its development, setting itself the goal of becoming also a leader in innovative industrial development, its share in the country's GDP has already exceeded 21%. This balanced strategy allows us to be sure that with any further trends, its potential will only increase, and the world's leading urbanists will focus on it," economist Valery Korneev told Izvestia.

The capital has a good potential to hold a leading position in the world's top cities in terms of GDP and purchasing power parity, the president is confident. Sergei Sobyanin confirmed that Moscow plans to keep this bar: if in 2020 the capital was in fifth place in the world in terms of economy, then in 2023 it reached the second, the mayor said. Currently, Moscow's economy is second only to New York in terms of purchasing power parity, Vladimir Putin noted.

— These are all the opportunities that arise as a result of economic development. And the fact that Moscow ranks second among the world's major megacities in terms of purchasing power parity after New York, and the difference is not very big, is, of course, the basis for solving social issues, including schools, polyclinics, hospitals, inpatient facilities, and so on. the head of state.

How the capital helps Donbass

Speaking about social issues, they touched upon the topic of education and healthcare. Thus, Moscow has already approached the expected average life expectancy of 80 years, the mayor said. Last year, this figure reached 79.5 years. Among the important social projects, Sergei Sobyanin noted, in particular, the program of reconstruction and modernization of Moscow polyclinics.

— We had 350 clinics in dilapidated condition. Now, in 2024, there are very few of them left. We will finish this program this year, and all polyclinics will be reconstructed or built anew," Sergei Sobyanin said.

The hospital is also undergoing reconstruction: about 1 million square meters are required to be built in Moscow. m hospitals and about the same number to upgrade. The mayor spoke about plans to complete the program within three to four years. In addition, Sobyanin promised that in a few years all schools in Moscow will be modern.

— In accordance with the national project for the development of education, we have decided to invest in the construction and modernization of schools. This program was created and the task was set to reconstruct all the schools in Moscow that require it. We used to build 40-50 schools each. Now, in addition to building 60 educational institutions, we will reconstruct another 100 schools. Such a big, global and serious task. I am sure that we will succeed," he said.

In addition to its own development and assistance to the federal center, the capital continues to help the twin cities of Donetsk and Lugansk in 2025, the mayor said. Moscow specialists have already reconstructed over 2 thousand facilities there and restored more than 1 thousand km of engineering networks. This year, the program of their development will also be continued: moreover, if in previous years they were mainly engaged in engineering infrastructure, now they have already begun to switch to the improvement of public spaces: parks, roads, streets. "It is very important that people feel that positive changes are taking place in their current lives," Vladimir Putin stressed.

Innovative technological solutions developed by Moscow enterprises and research centers can play a key role in the economic development of new territories in the near future, says Dmitry Orlov, head of the Agency for Political and Economic Communications (APEC). For example, large—scale construction projects being implemented in Moscow have already become an incentive for the introduction of technologies in the city that can reduce work time by up to 50% and labor costs by two to three times.