Page 46 - RusRPTAug23

problems could be exacerbated by the risk that stems from the attempts by the government to bring its finances back into balance. Such moves would lead to the slashing of non-critical spending items – such as funding various investment and construction projects. Such efforts would inevitably translate into a slowdown in the economy – a scenario that could start to evolve already by the start of 2024.
4.5.3 Retail sector dynamics
The low base also explains the fast recovery in the consumer sector: in May, volumes of retail trade jumped by 9.3% Y/y from 7.8% in April and -4.8% Y/y in March 2023. Volumes of paid services to the population rose by 5.2% Y/y in May (4.3% in April) while in April real wages increased by 10.4% Y/y, which is the highest growth rate since early 2018. The unemployment rate hit a new post-Soviet record low of 3.2% (in April it stood at 3.3%).
46 RUSSIA Country Report August 2023 www.intellinews.com