Despite the forecasts of Western analysts, the Ukrainian conflict has not weakened the Russian economy. On the contrary, it is now experiencing an “unexpected boom in consumer spending,” writes the Financial Times.
Real wages in the country increased by almost 14%, and consumption of goods and services increased by about 25%. At the same time, the unemployment rate is around 2.6%, which is a record post-Soviet low, the newspaper notes.
The “explosive growth” of wages is reflected across the entire socio-economic spectrum, radically changing the life of society, including blue-collar workers. For example, weavers who in December 2021 earned $250-350 monthly in ruble equivalent can now receive about $ 1,400, the article claims.
At the same time, Western sanctions and tighter state controls on capital movements have spurred wealthy citizens to spend money domestically. One Moscow resident told the FT that she and her husband are counting luxury cars spotted near their luxury apartment complex.
“Everyone who belongs to the upper middle class is just enjoying a really good life,” the capital investor said in a conversation with the publication. He drew attention to the number of new restaurants and the rapidly developing Russian e-commerce market.
According to Rosstat surveys, many Russians believe that their financial situation is improving. More than 13% of the country’s residents rate it as “good”, and this is the highest figure since 1999.
Retailers and consumer companies are responding hastily to the growing demand. Some catering establishments are increasing the number of outlets amid record takeaway coffee consumption. Domestic tourism is also booming.
“Two years ago, we expected a completely different scenario, in fact, one in which Russia would face an economic downturn caused by the collapse of exports and unemployment,” admitted Janis Kluge, an expert at the German Institute of International and Political Studies. Instead, he said, we now face “a completely different development of events.”
@ino_tv
