Recovery stage in Russian economy nears completion

Baku. 21 November. REPORT.AZ/ Over the past few months, reduction process in real income of consumers in Russia has accelerated, while growth in investments weakened.

Report informs referring to the Vedomosti newspaper, the most positive fact among economic indicators, was growth in real wages of population.

Chief economist for Russia & CIS region at ING Bank Dmitry Polevoy believes that in October, real wages grew by 4.3% in October, 4.4% in September and 3% in early October.

Other indicators are mainly negative. Thus, real incomes of population in October decreased by 1.3%. In the previous two months a decrease of 0.3% was recorded. Real incomes have dropped in the last 4 years. According to Fitch international rating agency, real incomes of the population have decreased by 11% since 2013. Reduction in real income reduces consumption costs. In October, the decline in the construction sector was 3.1%. Growth in investment was 6.3% in the II quarter and 3.4% in the third quarter. According to the head of the Central Bank of Russia, Elvira Nabiullina, the recovery phase of the Russian economy has been completed and 1.8% economic growth is predicted by the end of this year. Nabiullina said that Russia's economy is currently showing a boom in its growth potential.

Report, jointly prepared, by Gaidar Institute for Economic Policy and the Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation stated that the country's economy has no prospect at current state of the oil market and with no structural reforms.