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Digital economy surpassed agriculture in terms of its share in Russia’s GDP

According to the statement made by the Russian Association of Electronic Communications (RAEC), this year saw the share of the digital economy in the country’s GDP exceeding that of the agricultural sector (5.1% and 4.4% respectively) for the first time ever.

As estimated by the RAEC, digital economy’s share in GDP will reach 5.1% this year. The said percentage includes the contributions to the state budget made by IT and telecom companies, as well as online marketplaces, data aggregators and content services. The statistics were provided by analyst from RAEC Karen Kazaryan.

As of now, Russian digital economy is predominantly mobile one (3.9% of GDP). The industry also leads in employment creation, as the total number of those employed in the sector has grown by 24% in the course of this year alone and reached 217 000 people.

The report published by the association reveals that Russian e-commerce market volume is ₽2 trillion (about $30 billion), whereas the information infrastructure and telecom market accounts for ₽ 1.8 trillion (about $27 billion), followed by internet advertisement (₽ 250 billion, or about $3.8 billion) and digital content (₽75 billion, or about $1.14 billion) markets.

The growing share of the digital economy is due to the increased use of information technology, Konstantin Akilov, CEO TMT Consulting, explained.

Back in August, the Russian Ministry of Finance decided to cut the funding of the Digital Economy national programme by two thirds from ₽3.5 trillion (roughly $50 billion) to ₽1.2 trillion (roughly $17 billion). Moreover, these funds are supposed to be partially raised from private investors.