Russia Letter – Moscow – week beginning May 31
- Economic Council meeting
Last week, eyes were turned to Russian President Vladimir Putin’s meeting with his consulting group; the Economic Council, in Moscow.
During the meeting, Putin warned that Russia would continue to see 0 percent growth levels, if new income resources for the Russian budget are not developed.
At the meeting, the country’s Minister of Economic Development Alexey proposed taking steps to decrease real wages in the country, so private companies could increase their investments with the extra money.
Russia’s ex-finance minister and the head of Center for Strategic Research, Alexei Kudrin also gave a presentation during the meeting suggesting that the Russian government should cut its budgetary spending. He also proposed that new reforms should be realized, such as decreasing the Russian government’s share in the country’s economy.
While these were the most discernible suggestions, Putin said that he would make his final decision on what steps to take after further evaluating the situation.
- Salaries drop
According to a report called “Socio Economic Circumstances of the Russian People” by Moscow’s Higher School of Economics, the average monthly salary in Russia last year dropped by 34 percent to $558, compared to a year earlier.
The report stated that the average salary level in Russia has decreased to the same level as Kazakhstan as of last year which was declared as $549 per month.
Rosstat, the country’s statistical service agency, recently announced that the real wages in Russia on April 2016 decreased by 7.1 percent compared to the same period in 2015.