Welfare in Russia has been falling in the past two years: -0.3% in 2014 and -4.3% in 2015. To get household income back to the 2013 level, 5.2% growth is needed, the Analytical Center's expert Sofia Gavdifattova explained in an interview to Lenta.ru.
5.2% growth is needed to get household income back to the 2013 level
“At the same time, according to the latest data from the Federal Statistics Service, in January through April 2016 the household income dynamic was negative (-4.7%). It is much more than in the same period last year when it only fell by 2.4%,” Ms. Gavdifattova concluded.
The crisis is over but the people have not noticed: even as GDP growth went from negative to positive, people are not seeing more money in their wallets, Lenta.ru notes. Five million people have been pushed below the official poverty line. These are the ‘new poor’ whose living standards fell in 2014-2015. It may take several more years to bring these people out of poverty.