In 2018, the economy has kept growing at an extremely slow rate and discussions about development drivers have continued apace. Despite minimal inflation, the household income and consumer demand are not growing.
It is too early to talk about increasing of the purchasing power yet
"Upon the first two quarters of 2018, disposable income increased by an average of 1,207 rubles per person. Meanwhile, the amount spent on groceries fell by 12 rubles compared to the second quarter of 2018 while the amount spent on eating out went up by 64 rubles," Analytical Center expert Elena Razumova told an Agroinvestor correspondent.
"It's too early to talk about increasing of the purchasing power," the expert believes. "According to the Federal State Statistics Service, the disposal income has been growing not as a result of increase in household income but rather as a result of increase in savings or borrowed funds. Consequently, the consumer demand may very well have been propped up by loans." This means that in future, loan service expenses will put downward pressure on consumer demand, Ms. Razumova believes.
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