Russians see an increase in real disposable income and expect this trend to continue in 2024; Consumer confidence indices and projected changes in personal financial situation are near their peaks in the last decade. The increase in consumption will contribute to the growth of the Russian economy this year, First Deputy Director General of the Strategic Research Center Boris Kopeikin told socialbites.ca, commenting on Rosstat statistics on indices.
“Real disposable income in Russia increased significantly last year. First of all, due to rising wages. This allows households to both spend more and save more. As a result, both consumption and financial assets in the form of account balances, deposits and other financial instruments are growing,” Kopeikin noted.
The expert stated that demand is currently increasing and resources have been created to support this in the medium and long term, as well as resources for fixed capital investment. He explained that this is important in terms of economic dynamics. After all, last year’s economic growth, for example, was largely a result of increased domestic demand, as well as increased investment.
“Judging by the latest data from Rosstat, the trend continues. Consumers are confident about their financial situation and intend to spend. This means that consumer demand will continue to contribute to GDP growth,” Kopeikin said.
But this also means it is necessary to increase the supply of goods and services, the expert added. Kopeikin explained that otherwise, if supply falls behind demand, price pressure will remain high. The expert concluded that increased imports to compensate for the gap between the needs of consumers and the capabilities of producers can lead to pressure on the ruble exchange rate and therefore also interfere with the decline in inflation. Kopeikin therefore concluded that business and authorities should focus on investment and productivity growth with increased attention to import substitution, both in sectors focused directly on final consumption and in the production of intermediate and investment goods.
Before that Rosstat registered Improving consumer sentiment among Russians.
Previously “socialbites.ca” saidThe highest salaries are offered to Russians in March.
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Source: Gazeta
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