May 10, the forecast for 2016-2019, made by the Ministry of Economy, was published. The Office proposes to limit the salaries of state employees in 2016-2017. Sergei Naryshkin, State Duma Speaker, said that deputies may not support the limitation of salaries. Dmitry Peskov, spokesman of the Russian president, said that the Kremlin has no clear position on the proposals of the Ministry of Economy. How has the recession already affected the lives of Russians?
According to the research by the Institute of Social Analysis and Forecasting, for the first time in eight years Russians spent more than half of income, 50.1%, on food products.
In 2015, the real wages of Russians decreased by 9.5%, forcing them to revise their spending, as well as the budget for the vacation.
Russians also began cutting spending money on entertainment and eating out. For example, according to Nielsen study of September 2015, 49% of respondents admitted that they had not been in bars since the beginning of the year. The number of people who ear out at least once a month, has decreased by 10% on average.
According to the latest opinion poll, published on May 10, 1% of the respondents said that the situation in the country was great, 11% said it was good.
Business in crisis
British consulting company Global Counsel published a report in late 2015 which stated that in 2016 Russia would leave many global companies. The conclusion was based on analysis of financial statements of 46 companies, including BP, Royal Dutch Shell, Deutsche Bank, Siemens, Lafarge.
The recession was the hardest for retail companies, especially in the middle segment. In 2015, many brands had to leave the Russian market, including American Eagle, River Island, Esprit, New Look, Finnish department store Stockmann, that was on the market since 1989. In 2014, the company’s losses amounted to €26 million.
Sales grew mainly in the low price segment. This is clearly seen in the fast food market: in 2015, leaders were KFC, Burger King and McDonald `s.
According to the Association of European Businesses (AEB), in 2015, sales of cars in Russia fell by 35.7% to 1.601 million vehicles. Some car brands had to leave the country, such as Opel, Honda, Seat. Chevrolet stopped selling most car models.