section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Russia has a high-income, industrialized, mixed market-oriented economy following a turbulent transition from the Soviet planned model during the 1990s. It has the eleventh-largest economy by nominal GDP and the fourth-largest economy by GDP (PPP). As of 2023, the service sector accounts for roughly 57% of total GDP, followed by the industrial sector (30%), while the agricultural sector is the smallest, at 3% of total GDP. Russia's foreign exchange reserves are the fifth-largest in the world. It has a labour force of about 73 million, which is the eighth-largest in the world. As of 2023, Russia's largest trading partner by total import and export volume is China.
  
  Russia's human development is ranked as "very high" in the annual Human Development Index. Roughly 70% of Russia's total GDP is driven by domestic consumption, and the country has the world's twelfth-largest consumer market. Russia has the fifth-highest number of billionaires in the world. However, its income inequality remains comparatively high compared to other developed countries. The variance of natural resources among its federal subjects has also led to regional economic disparities. High levels of corruption, a shrinking labor force, and an aging and declining population also remain major barriers to future economic growth.
  
  Following the 2022 Russian invasion of Ukraine, the country has faced extensive sanctions and other negative financial actions from the Western world and its allies which have the aim of isolating the Russian economy from the Western financial system. However, Russia has completed its transition into a war economy, and has shown resilience to such measures broadly, maintaining economic stability and growth—driven primarily by high military expenditure, rising household consumption and wages, low unemployment, and increased government spending. Yet, inflation has remained comparatively high, with experts predicting the sanctions will have a long-term negative effect on the Russian economy.