The decline in real incomes of the population of Russia was completed and already in 2017 may start their growth, said the first Deputy Prime Minister Igor Shuvalov, speaking at the business forum in Singapore.
“For some groups of the population real incomes are still little, but growing. The income decline is over. Hope next year still, it will be the trend for all groups of the population, income will grow”, — Shuvalov said (quoted by “RIA Novosti”).
At the request of the Bank of Russia polls showed that in October 2016, the number of Russians with incomes at the level of inflation rose to the highest in the last two years level. For the first time since February 2014 that their revenues are growing at the rate of inflation or faster, said 13% of Russians.
According to Rosstat, in October 2016, the rate of decline of real incomes of Russians more than doubled in September, as a result they declined at an annual rate of 5.9%. In total real incomes of Russians reduced continuously for the next two years: in recent times the growth in annual terms was recorded in October 2014. The experts of the Institute for social analysis and forecasting Ranhigs announced in October that recorded in July—September 2016 record since 1999 quarterly decline of incomes of Russians (minus 6.1%).
The Minister of labour and social protection Maxim Topilin previously predicted that the pre-crisis level of real incomes of the population of Russia will come to the end of 2018.
Speaking at the forum on Friday, Shuvalov also expressed the confidence that the most difficult time is behind us, the banking and financial system become much stronger Russian economy in General, “operational” and in 2017, the GDP decline will be replaced by growth.
“We are seeing now is a slow but growing. Month-to-month, the Russian economy is growing — we hope that next year this growth will be more than 1%”, — Shuvalov said, acknowledging that such a modest annual growth for the Russian economy is insufficient, but even this increase is better than “lack thereof”.
First Deputy Minister also assured that the government is now “seriously looking to break the monopoly blocks” and create a more favorable for doing business “competitive space”.
“The future of the Russian economy is, of course, not raw. The commodity sector will continue to grow, but the money from the commodity sector should not be sent to budget costs”, — Shuvalov said (quoted by TASS).