Distinctive features of the Republic of Crimea, which formed the economy of the peninsula, are: seaside location of the region, fertile soils, warm climate as well as natural and recreational resources. Due to the prevailing factors, basic industries in the region are: food processing, construction materials, machinery, agriculture and resort sphere.
The general indicator of economic activity in the region, describing the process of producing goods and services, is the gross regional product.
The index of actual volume of gross regional product (GRP) of the Republic of Crimea on the basis of 2017 amounted to 114.7% compared to the previous year.
Dynamics of GRP index of the Republic of Crimea
The gross regional product of the Republic of Crimea in 2017 amounted at 341 billion rubles.
The volume of gross regional product per capita in 2016 amounted to 165,4 thousand rubles, which is 2,8 times lower than the average for the subjects of the Russian Federation for the same period (472,2 thousand rubles), and higher than in Republic of Tuva (164,7 thousand rubles), Karachay-Cherkess Republic (156,6 thousand rubles), Kabardino-Balkar Republic (153,7 thousand rubles), Sevastopol (151,9 thousand rubles), Chechen Republic (118,7 thousand rubles), Republic of Ingushetia (106,8 thousand rubles).
GRP structure of the Republic of Crimea by economic activity
One of the competitive advantages of the Republic of Crimea is a high level of diversification of the economy, which is widely represented by industry, agriculture and services.
The service sector (trade, transport and communications, real estate, etc.) prevails in the structure of the economy of the Republic of Crimea (41.8% of the total GRP). The share of the trade and restaurant and hotel business in GRP is 23.1%, while the number of employees is 29.7% in this sector.
Industry and agriculture occupy the leading position in the sphere of material production, whose share in the total volume of gross regional product is 26.1%. Nearly 33% of total employments are involved in this area. Meanwhile contribution of the industry to the GRP is 1.7 times higher than the agriculture having much lower number of employees (2.2 times less).
It should be noted that agriculture, food industry and partially construction are largely focused on tourists.
The tourism industry as a whole makes a significant contribution to the economy of the republic. Every fourth establishment of the sanatorium complex refers to health resorts, where more than two-thirds are sanatoriums of different specialization.
The industrial complex of the Republic of Crimea is a leading sector of the economy of the region, its share in the gross regional product is 14,7%. The basis of industry is food, chemical industry, mechanical engineering, including shipbuilding, as well as supply of electricity, gas, steam and conditioned air.
There are more than 2 thousand large, medium and small enterprises in the industrial production of the Republic of Crimea (including individual entrepreneurs operating in the industrial sector), which employ around 100 thousand persons.
The territorial distribution of the republic’s industrial potential is uneven, due mainly to differences in resource endowments. Industrial enterprises of Crimea are concentrated in the cities of Simferopol, Armyansk, Krasnoperekopsk, Kerch, Feodosia, Evpatoria and Bakhchisaray and Krasnogvardeyskyoe region.
The territorial distribution of the industrial potential of the Republic of Crimea
The leading industrial enterprises of the Republic of Crimea:
The total volume of gross regional product in agriculture accounts for 8,6%. The strategic benchmark for development of the agrarian sector is creation of a powerful source of raw materials for formation of the food complex, capable not only to meet the needs of the population and recreants in the main types of food, but also to increase the export potential of the sectors traditional for Crimea: viticulture, winemaking, horticulture and vegetable growing.
The total area of agricultural lands of the Republic of Crimea is 1,79 million hectares, including arable land - 1.27 million hectares. The main agricultural areas of the republic are Dzhankoy, Pervomayskoe, Krasnogvardeyskoe, Saki, Kirovskoe and Simferopol regions. Climatic conditions of Crimea allow growing the majority of the temperate zone crops and some subtropical crops on its territory.
Horticulture of the republic is presented by pome cultivation (apples, pears) and stone fruits (plums, peaches, apricots, cherries). The climate is favorable for the cultivation of oil-bearing crops (coriander, rose, lavender, sage), as well as raw materials for biofuel production (rape). The republic is known by growing of technical varieties of grapes used for the production of quality wines, brandies and juices. About 100 thousand tons of grapes and 14-16 mln. dal of wine materials are produced on average per year.
Livestock is represented by such subsectors as poultry, sheep, pigs, dairy and stock-breeding.
The Republic of Crimea on the agricultural map of the Russian Federation
Collection of grapes
Collection of fruits and berries
Collection of vegetables
Collection of wool
Number of sheep and goats
The share of construction sector is 2,8%, in the total volume of gross regional product. The industry employs 3.7% of the total economically active population of the republic.
The development of the construction industry in the Republic of Crimea is primarily aimed at increasing the availability of earthquake-proof housing for the population; formation of long-term plans of urban development territories; establishment of safe living conditions for the population and trouble-free functioning of the urban development facilities, exposed to seismic, landslide and abrasion processes; prevention of economic and environmental impacts of natural disasters; implementation of financial and investment mechanisms of state support for affordable housing.
The territory of the republic is characterized by significant reserves of construction mineral raw materials: building stone, facing stone, sawing stone, cement raw materials, marl, gypsum and anhydrite, sand, expanded clay and glass raw materials. The raw material base of the region allows building up capacity for the production of cement, walling materials, concrete designs and products, crushed stone and sand.
The construction complex of the Republic of Crimea is represented by organizations that perform general works for construction of buildings, bridges, highways, tunnels, main and local pipelines, communication and power lines, installation, wiring and finishing works, as well as organizations engaged in production of building materials and structures.
577 companies performing construction and installation works are operating in the construction market of the Republic of Crimea, including 338 enterprises carrying out the construction of buildings. 93 companies are engaged in construction of engineering structures, 146 companies perform specialized construction work.
The largest construction companies of the Republic of Crimea:
The strategic goal of the Republic of Crimea is the formation of the modern international tourist center, which will meet three basic criteria: year-round, demand and competitiveness.
13 resort regions are situated in Crimea: urban districts (Alushta, Evpatoria, Kerch, Saki, Sudak, Feodosia, Yalta), as well as the municipal regions (Bakhchisaray, Lenino, Razdolnoe, Saki, Simferopol and Chernomorskoe). The most popular tourist destinations are Yalta area, Alushta, Sudak and Feodosia, accounting for 80-85% of all travelers visiting Crimea.
770 collective accommodation facilities (health resort and hotel facilities) are functioning on the territory of the Republic of Crimea with a total capacity of 158.1 thousand people, including 360 facilities providing treatment and rehabilitation services. 139 resorts and 162 hotel establishments are designed for year-round operation.
The southern coast of Crimea is specialized in treating adults, meanwhile Evpatoria is children's resort. There are 109 children's recreational facilities on the territory of the republic, including 77 children camps, 31 sanatorium and 1 health education center. There is the federal state budget educational institution of the International Children's Center "Artek" located in the republic.
Resort resources of Crimea, alongside with favorable climatic conditions include 50 salt lakes, 6 deposits of medicinal mud and more than 100 mineral springs.
Tourist resource potential of Crimea includes over 3000 natural and man-made objects.