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8.1.2 Deposits
Russian households have also accumulated an "income overhang,"which this could support spending throughout the Russian economy during the recovery.
Checking accounts are up 45% this year and cash holdings have also grown by 27% since the pandemic started. That this money is stored in liquid easy-to-access form, rather than longer-term investments or accounts, suggests a potential willingness to spend.
Consumer spending habits have also changed in the last few months as Rusians that put off big ticket purchases during the lockdown have started to take the plunge and buy apartments and cars again, giving the economy a growth-boosting shot in the arm. (See retail and income section.)
The development of both saving and spending habit will be heavily dependent on how the coronavirus epidemic develops over the rest of the year.
51 UKRAINE Country Report October 2020 www.intellinews.com
