Page 55 - RusRPTMay21

country over the past year, and we really, really lack these migrants for the implementation of ambitious plans.” Prior to the pandemic, Russian companies employed millions of foreign workers in mainly low-skilled and low-wage jobs. Most of the employees come from former Soviet republics, such as Uzbekistan, Tajikistan, Kyrgyzstan, and Ukraine. In December last year, it was reported that Russia has lost around five million foreigners since the start of the Covid-19 crisis. The numbers have dropped to approximately 6.3 million.
4.5.2 Income dynamics
The nominal average income per capita rose 3% y/y in 1Q21 (vs. +3.7% y/y in 4Q20, -0.6% y/y in 3Q20 and -4.7% y/y in 2Q20), according to Rosstat.
Real money incomes were down 2.8% y/y (vs. -0.7% y/y in 4Q20, -4.1% y/y in 3Q20 and -7.6% y/y in 2Q20) and real disposable incomes were down 3.6% y/y (vs. -0.9% y/y in 4Q20, -5% y/y in 3Q20 and -7% y/y in 2Q20).
“We think there were several reasons for the fall in real disposable incomes in 1Q21. The first reason is the base effects, as pensions were paid out earlier due to the non-working week of 30 March 2020 to 3 April 2020 and the beginning of COVID-19 outlays. Second, the inflation rate surged from 2.4% y/y in 1Q20 to 5.5% y/y in 1Q21, trimming revenue by more than 1ppt. Finally, Rosstat did not count in full the shift in household savings from deposits to
55 RUSSIA Country Report May 2021 www.intellinews.com