Analyst explains sharp increase in consumption in Russia

Rosstat statistics have confirmed the rapid recovery of Russian household consumption to 2021 levels, Kommersant reports.

Vladimir Trefilov / RIA Novosti

Artyom Deyev, head of analytics at AMarkets, explains this trend primarily by pent-up demand.

Demand for durable goods is recovering most strongly, even though the products purchased might have lower quality or unfamiliar properties.

“I think that consumer confidence has increased, and people are shifting from a savings strategy to buying expensive durable goods,” the expert told Invest Foresight.

According to the Central Bank, shopping center attendance has been on the rise for some time. People are also buying more cars, both used and new. Domestic tourism is growing. Banking statistics show a recent increase in lending and a decrease in customer savings. This means the credit and deposit channel has ceased to restrain purchasing and spending.

“What does this suggest? I see two reasons for the recent changes: people are tired of the crisis and uncertainty. At the same time, having learned the bitter lesson from experience in 1998, they seek to invest whatever money they have available in some tangible goods or spend it on pleasure. This trend is unlikely to last long of course – I think until winter at best,” Artyom Deyev predicted. “But it’s hard to say for sure right now.”

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