Wage Increase in Acra: Anticipated 12% Boost in Workers' Compensation
In a nutshell, economic growth projections for Russia in 2024 are relatively low, with experts predicting a growth rate of around 4.1% to 4.3%, mostly attributed to wartime spending and state intervention. However, this will likely decrease to about 1.4% in 2025 and continue to slow further in the years 2026 and 2027.
Vladimir Gusakov, head of AKRA, recently pointed out that the labor market in Russia remains tight, acting as a major constraint on economic growth. Meanwhile, President Putin has admitted that a slower economic growth is inevitable but urged not to let it plummet like in a cryochamber.
As for wages, according to Rosstat, the average salary in Russia increased by 21.9% in December 2024, reaching 128,700 rubles, while the average monthly salary throughout 2024 was 89,000 rubles, up 19% from the previous year.
Economic challenges such as labor shortages, wartime economy structure, inflation, and budget deficits are contributing to the predicted slowdown, along with external pressures like monetary policy and declining oil production.
In summary, Russia's economy is facing a slowdown due to a mix of internal factors and external pressures, with continued growth unlikely without significant productivity improvements and structural reforms.
Businesses in Russia might struggle due to the slowing economy, as labor shortages and inflation contribute to the predicted slowdown. To improve the economic situation, finance-related measures such as productivity improvements and structural reforms could be necessary.
