Russians Looking at Possible 12% Drop in Real Incomes This Year: Report

Real incomes of Russian citizens could drop by 12% in 2020 and the unemployment rate may grow to 12.1%, the Center for Strategic Research (CSR) says in its weekly monitoring of the business environment in the country, according to Finmarket.

The sharp devaluation of the ruble, the coronavirus crisis, and the oil price drop are events with the greatest negative effect for the business, the research says.

“Considering the economic expectations of businesses, the growth rate of actual salaries and wages may be negative in 2020 and total minus 12%; the average salary may decline by almost 4,000 rubles ($55) monthly (compared to 2019),” CSR says. Real salaries may go down to 43,500 rubles ($600) per month in average, the research noted.

The unemployment level in Russia may increase to 12.1%, CSR says.

“Subject to economic expectations of the business, the unemployment level may grow to 12.1%, with the highest decline in employed staff expected in processing sectors (-11.4%),” according to the research.

The total number of unemployed in Russia may grow from 3.5 million in 2019 to 9.1 million this year, CSR analysts say.

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