Erosion of wages happened for the first time since the crisis of 2008 -2009. For now, real wages decline accounts for 0,3%. Next year the inflation will exceed wages by 2%. Cooling-off in consumer demand may lead to economic recession as early as fourth quarter of year 2014.
Decline of real wages will not do much good
«Decline of real wages will not do much good”, commented this situation to “Nezavisimaya Gazeta” the Deputy Head of the Analytical Center Gleb Pokatovich. “Lately there was an investment bust, and consumer demand was the main engine of economic growth, and now this engine is almost cut off. Retailing is growing mechanically, in September devaluation of the ruble encouraged buying activity in non-food area. However, food retail has stopped, and overall retail goods turnover growth rate lost its ground by half, comparing with previous year”. Eventually it may lead to economic recession this very quarter, the expert believes. Wages growth inhibition in public sector will be the most apparent, thinks Mr. Pokatovich. “In 2013 it was the main engine for money income growth due to realization of decree of the President, but in 2015 wages in public sector will grow slower”, the expert said.