Economic policy of the Government of the Republic of Karelia is determined by adopted documents of strategic planning: the Strategy of Social and Economic Development of the Republic of Karelia up to 2020, the Concept of Social and Economic Development of the Republic of Karelia up to 2015, and the Program of Social and Economic Development of the Republic of Karelia up to 2015.

In the last five years, the Gross Regional Product (GRP) in current prices has increased from 77,1 billion RUR in 2005 to 130 billion RUR in 2010 or nearly by 70%. At the same time, in 2008-2009 as a result of the negative impact of the world economic crisis the republican economy went down by 16,4%.

The basis of the republican economy is traditionally formed by industry.

Positive trends, which formed in the economy in 2010, will allow for increasing the share of industry in GRP structure up to 31%.

The growth of production volumes and people’s income influenced the preservation of the high relative weight of transport and communications in the republican economic structure (16,6%), as well as wholesale and retail trade (10,4%).

In 2010, due to restoration of industrial production volumes, increased profits, reduction of unemployment, and increase of people’s income the growth of GRP was estimated at about 8,5% compared with 2009.

The basis of the republican industry is formed by forest industry and mining, machine-building, electric power and food industry. In the turnover structure of organizations by the type of economic activity in the Republic of Karelia the leading role is played by processing (21 %), wholesale and retail trade (32 %), production and distribution of energy, gas and water (12,1 %), and mining (9,5 %).

In general, the physical volume of industrial production in the Republic of Karelia in 2010 increased by 18,3 % compared to  2005.

During 2006-2010 the increase in production  volumes was notable in mining (114,6 %), pulp and paper production (104,0 %), production of vehicles and equipment (131,0 %), food products (171,0 %), production of electricity, gas and water (107,3 %).

Two thirds of industrial output are exported. The biggest share in the exported goods is taken by pulp and paper products, timber and wood products, aluminum, iron ore pellets. The economy and population of the republic are making a valuable contribution in replenishing of currency reserves of Russia, ruble strengthening and inflation reduction. The external trade turnover in 2010 was 1823 million USD, which 1,4 times higher than in 2009.

Traditionally the main external trade partner of Karelia is Finland, which takes over 20% of external trade turnover.