Accounts Chamber Skeptical About People’s Income Growth in 2019

22 May 2019 (09:23)

UrBC, Moscow, May 22, 2019. Russians’ factual incomes are highly unlikely to go up this year, Russia’s Accounts Chamber’s analytical report on the federal budget/the state-run non-budget funds’ budget implementation in January-March 2019 states.

‘Both Urals oil prices and the ruble exchange rate kept going up throughout the first quarter of 2019. Inflation rate went up to 5.3% a year in March, industrial production output increased by 2.1%, and retail trade turnover increased by 1.8%. People’s factual disposable incomes, however, kept dropping (by 2.3%),’ the report indicates.

According to the auditors, the income parameters did go up by 1.4% in the first quarter of 2018 because of a one-time allowance that was paid in January 2017.

‘For the current income dynamics to start looking good by the end of the year, Russians’ factual disposable incomes need to rise dramatically in the second, third, and fourth quarters of 2019, which is not very likely,’ the report says.

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