Experts warn about drastic drop in personal income

Experts from the Higher School of Economics (HSE) predict that Russians’ actual income will drop by as many as 18% in the second quarter.

This forecast is three times worse than the official estimate of the Ministry of Economic Development that predicts a 6% decrease.

Analysts from the HSE Center of Development Institute suggest that the steep decline will happen even despite all the anti-crisis measures taken by the government.

As of the end of this year, the drop in people’s actual income may be more than 12%. Still, the official forecast is 8.2%.

Russians’ income has been in decline since 2014. In 2018, the decrease rate was around zero and last year the income actually grew by 0.8%. Eventually as of the end of 2020, the actual income will be 15% to 20% lower than in 2014.

It should be noted that economists define actual income as monetary income minus inflation and mandatory payments (taxes, loan interest rates, etc.).

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