Russian Economy in 2000 at a Glance

In spite of the immediate consequences of the financial crisis in 1998 and the financial credibility
of Russia severely damaged. With a surprising speed, Russia rebounded from the financial crash
in August 1998. It created conditions which enabled Russia to rapidly expand the economy over
the next decade. A large proportion of the reason was the devaluation of the ruble, which
increased domestic producers to 8.3 per cent in 2000 and around 5 per cent in 2001, nationally as
well as internationally and as a result of genuine GDP growth.
There were significant economic reforms between 2000 and 2002 in support of growth, including
simplified business registration and licensing and the privatization of agriculture land. There
were also major economic reforms. And tax reforms, including simplifying the tax regime and
reducing the rate of taxation that introduces a 13 per cent flat income tax and a major effort to
deregulate small and medium-sized enterprises, improve their situation.
The Russian economy was boosting significantly as commodity prices rose between 2000 and
2008. The average annual growth in GDP was 7%. Available income more than doubled and
increased eightfold in dollar terms. Consumer credit volume rose 45 times between 2000-2006,
driving private consumption booms. People living below the poverty line fell from 30% in 2000
to 14% in 2008.