Consumer Boom in Russia Hinders Savings
// Monitoring / consumer spending
Russia’s Ministry of Economic Development and Trade made a preliminary estimation according to which the total amount of the population’s income made up 9.1 trillion rubles in the first semester of 2007, which is by 20.1 percent more that in the first semester of 2006. Consumer spending did not grow as fast. Yet, it has increased by 19 percent, making up 8.9 trillion rubles. Russia is undergoing a consumer boom.
In the first semester of 2006, consumer spending made up 70.6 percent, and the expenses on buying goods – 53.6 percent of the population’s income. In the same period of 2007, the corresponding indexes reached 71.9 percent and 54.6 percent. Retail trade keeps growing rapidly (by 14.2 percent), exceeding the growth of the population’s real disposable income (11.2 percent).
The average monthly salary overcame the mark of $500 in June. The income growth causes rapid increase of goods consumption, public catering, and sales of cars. The share of cars in the consumer market has already reached 4.8 percent.
However, Russia’s consumer boom has a negative side as well. Savings grow extremely slowly, while they are the most important source of the economy’s investment resources. Savings grew by 1.1 trillion rubles in the first half of 2007, which is by 1.7 percent more than in the same period of 2006.
www.kommersant.com
All the Article in Russian as of July 31, 2007
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