Generalsocio-economicindicators

An important characteristic of socio-economic status of Kaluga Region is continued improvement of major macroeconomic indicators that show low inflation, increased real income of the population, increased investments in fixed assets, production output growth in the real sector coupled with financial stability and sustainable regional budget replenishment.

Investment, innovation and workforce capacity potential have created a base for sustainable long term economic development in the region. The region’s economy is experiencing extended reproduction, where most of the growth is being driven by regional factors. The most favorable environment for the development of entrepreneurial activity has been created in the region. The region is becoming more and more attractive to investors. The ongoing diversification of production encourages the establishment of multi-industry businesses. Material wellbeing of the population is growing and domestic demand is expanding. Political and social stability has been achieved in the region.

Stability in industries generating the gross regional product (GRP), stimulation of investment activity, the development of small and medium business not only provides a positive dynamics of the real GRP, but also contributes to an increase in its per capita value as compared to other regions. This indicator’s value is gradually getting higher in the region as compared to other regions of the Central Federal District or throughout Russia.

Industrial sector is the fastest growing sector of regional economy, it accounts for the largest contribution to the GRP growth and the bulk of tax revenues to the regional budget system. The machine-building complex holds a leading position in the structure of industrial production (its share is 40%).

The agricultural sector is now undergoing a new qualitative change: the views of agricultural producers are changing, new advanced technologies are gradually being introduced to livestock breeding, innovative technology is purchased, work with investors becomes more intensive, young people are attracted into agriculture.

Year by year the development of small and medium-sized businesses with a growing number of small businesses and small business employment growth, output growth and increased amounts of taxes paid to the budget contributes to creating a competitive environment, increasing employment and saturation of the market with goods and services. This is due to the implementation of state support measures within the framework of regional target programs through targeted sponsorship of municipal programs aimed at small business development, which also enables to use municipal budget funds for small business development and active formation of business support structures.

Innovation is the key factor affecting economic growth. In this connection, another objective of regional economic policy is to create the conditions for bringing competitive and innovative products to the market.  Currently, the basis for innovative development of the region is high-technology products and knowledge-intensive production in the field of nuclear energy and energy efficient technologies, space engineering, laser and fiber-optic electronics, teledynamic systems, electronic instrument manufacturing and pharmaceuticals, agriculture and other areas.

The region is committed to the creation and development of investment areas - technological and industrial parks (industrial estates), equipped with the necessary engineering infrastructure to accommodate new production facilities, including foreign-capital invested companies, which will create new jobs, allow for a significant increase in government tax revenues at all levels and thereby contribute to solving the problem of the region – further development without being dependent on subsidies.

Key priorities for increasing investment attractiveness of the region are: a favorable business climate in the region, established regulatory framework supporting investment activities.

Socio-economic development of any region is accompanied by an increase in demand for high-quality transport services therefore greater attention is paid to the development of transportation network in the region and the improvement of the transport complex.  Scheduled maintenance roadworks are regularly performed in the region to maintain public roads and road facilities in good order and ensure continuous traffic flow and safe driving. There is more work to be done to meet demands of the economy in freight traffic. Social transportation network is under development, transport companies’ fleet renewal issues are being dealt with.

Economic and taxable capacity growth ensures sustainable regional budget replenishment, which allows increasing expenditures within the frames of targeted social policy and modernization of economy. Social policy measures in the region are constantly aimed to ensure equal access for the general public to basic public goods: health care, education and social protection.

¹⁾ In current prices.

²⁾ Adjusted annual data will be provided on February 25

³⁾ Including retail trade turnover of the Main Department of Trade of the RF Ministry of Defense.

⁴⁾ Employment survey data (moving average for October-December 2012).

⁵⁾ Estimate.

⁶⁾ To December of the previous year.

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