Page 57 - Russia OUTLOOK 2023

• Real incomes

Real household earnings have been decreasing in Russia since 2016,
which has affected the families’ potential long-term budgeting, First Deputy
Minister of Labour and Social Security of Russia Olga Batalina said in
December.

"Unfortunately, real disposable household income has continued falling since
2016, which has surely influenced the stability of financial status of families,
their confidence and possibility of long-term budgeting, considering that
housing improvements are one of [the] major demands of families with kids,
this always being a very serious financial burden," she said.

The real disposable income of the Russian population decreased by over
12% in the third quarter of 2022 compared to the same period of 2021. The
y/y index of real disposable income saw a decrease from the previous month.

Real incomes have fallen in most Russian regions according to RosStat.
While the national indicator (a fall of 2.4%) may not seem too serious, note two
things. First, this happens after a decade of stagnating and falling incomes,
and second, there are significant regional differences. While oil and gas
regions (and some poorer North Caucasian regions) registered growth, the
situation in regions that saw an industrial breakdown this year – including

57 Russia OUTLOOK 2022 www.intellinews.com