Abstract: the development of the economies of the constituent entities of the Russian Federation depends on the potential and efficiency of their use. The effective use of potential opportunities makes it necessary to measure the development potential of the economies of the regions. In this research an assessment of potential of development of economies of the regions entering the Southern Federal District is given for what the group of regions of the SFD (Southern Federal District), on the potential of their development was carried out. During the study, specific features of the regions of the Southern Federal District were identified. A system of key characteristics of development potential of regional economies of the UFO has been formed, their sorting has been carried out, which has allowed to justify the observed differences in functioning of regional economies.
Keywords: development potential, human capital, fixed assets, income of the population, regional economy, gross regional product, productivity, natural resource potential, efficiency