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4.5.2 Income dynamics
The Russian population’s real disposable income fell by a record-breaking 13.1% during the first three quarters of 2020. And the fourth quarter, with its relatively high inflation, is unlikely to improve the situation. By the new year, the average Russian family’s income will drop to the level seen in 2013.
According to World Bank’s calculations, while the incomes of single-person households and households consisting of couples with one child fell sharply, families with at latest two children, as well as retirees, saw their incomes increase as a result of the social benefits handed out during the crisis. The authorities decided that it was better to send support payments to citizens through proven channels — child benefits and one-time payments to pensioners — than to attempt to identify and support all of those affected by the crisis (in all likelihood, conditions in Russia would have made it simply impossible to do this quickly).
Such social support resulted in a decrease in poverty levels compared to the second and third quarters of 2019, the World Bank calculated. However, this is a temporary effect and without urgent support measures in 2021, Russians will begin to grow poorer once again.
49 RUSSIA Country Report February 2021 www.intellinews.com
