The number of Russians who say their salary does not cover basic spending has jumped by 20 percentage points in two years to almost half, a survey by recruiter Headhunter showed, as Moscow diverts record fiscal resources to funding its war in Ukraine.
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The findings, from an October survey of almost 5,000 people, put Russia’s economic woes in sharp focus and could give the authorities a headache in the run-up to March’s presidential election, in which President Vladimir Putin is likely to extend his more than two decades in power.
Record-low unemployment this year is evidence of Russia’s stark labour shortages, while the rouble’s weakness has added to intense inflation pressure.
Interest rates, already at 13%, are expected to rise further to tackle inflation seen ending the year at around 7%, well above the Bank of Russia’s 4% target.
Asked whether their salary was enough to cover basic spending, without taking into account income from second jobs or investments, just one in five Russians surveyed said yes.
The average monthly nominal wage earned by Russians was 71,419 roubles ($756) in July, Rosstat’s statistics show.
Russia could miss its 2024 budget revenue target and be forced to hike business taxes if the rouble proves stronger than expected and optimistic economic assumptions fall short, analysts say.
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