Russia disposable incomes rebound 3.1% in 2021, Nov real wages up

2 minute read
Register now for FREE unlimited access to

MOSCOW, Feb 9 (Reuters) - Real disposable incomes in Russia rebounded 3.1% in 2021 after a 2% drop the year before, statistics service data showed on Wednesday, further evidence of the country's economic recovery from the havoc wreaked by the coronavirus pandemic.

Incomes pose a sensitive problem for Russian authorities, especially with rising prices hitting living standards and amid the threat of spiralling inflation, something President Vladimir Putin has called for pre-emptive measures to avoid.

For years, Putin has promised to raise real disposable incomes, a measure of people's purchasing power, but they shrank sharply in 2020 due to the coronavirus crisis. The decline was exacerbated by the weakening of the rouble filtering into consumer prices.

Register now for FREE unlimited access to

Russia's central bank is widely expected to raise interest rates by 100 basis points to 9.5% at its next rate-setting meeting on Feb. 11. read more

Real disposable incomes, which are adjusted for inflation and exclude mandatory payments, fell for four consecutive quarters as the pandemic hit, before rebounding 6.8% in the second quarter of last year.

An 8.8% jump in the third quarter followed, before a more modest rise of 0.5% in the final quarter of 2021, leaving annual growth at 3.1%, according to the Federal Statistics Service, or Rosstat.

Real wages rose 3.4% year-on-year in November, the data showed, well above expectations of a 0.6% from analysts polled by Reuters.

Average nominal wages earned by Russians rose 12.1% year on year to 55,639 roubles ($744.78) in November.

Rosstat provided the following data:

($1 = 74.7050 roubles)

Register now for FREE unlimited access to
Reporting By Alexander Marrow; Editing by Alex Richardson

Our Standards: The Thomson Reuters Trust Principles.