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12:01 a.m.: Russian consumer demand contracted at its fastest pace in seven years in 2022 and real disposable incomes fell, data released on Wednesday showed according to Reuters, as the country’s population felt the effects of its dimming economic prospects.
Russia’s export-dependent economy has withstood the impact of sanctions better than first expected, but still suffered a GDP contraction of around 2.5%, as the West imposed restrictions in an effort to punish Moscow over its actions in Ukraine.
Although its economic outlook this year is not so gloomy, Russia faces a labor market shortage, lower oil and gas revenues as price caps and embargoes kick in, as well as a sharply widening budget deficit, 2023 looks set to present new challenges for the government.
Real disposable incomes fell 1% in 2022, preliminary data from the Rosstat federal statistics service showed. Real wages, which are adjusted for inflation, rose 0.3% year-on-year in November, just the second positive reading since March.
Some information in this report came from Reuters.