During Putin’s eight years in office, industry grew by 76%, investments increased by 125%,[17] and agricultural production and construction increased as well. Real incomes more than doubled and the average monthly salary increased sevenfold from $80 to $640.[15][18] From 2000 to 2006 the volume of consumer credit increased 45 times[136][137] and the middle class grew from 8 million to 55 million. The number of people living below the poverty line decreased from 30% in 2000 to 14% in 2008.[17][138]
In 2001, Putin, who has advocated liberal economic policies, introduced a flat tax rate of 13%;[139][140] the corporate rate of tax was also reduced from 35 percent to 24 percent;[139] Small businesses also get better treatment. The old system with high tax rates has been replaced by a new system where companies can choose either a 6-percent tax on gross revenue or a 15-percent tax on profits.[139] The overall tax burden is lower in Russia than in most European countries.[141]
It’s still a gas-and-oil economy. Oil prices or yields fall, and Russia is in trouble.