Economic News

One of the visible negative short-term consequences of the economic difficulties in Russia is the shrinking middle class. For the past decade Russia’s middle class was estimated at 40% of the 146 million population but according to Bloomberg is expected to shrink to 30% in the coming years. Some of the estimations are even more pessimistic. According to Sberbank CIB’s latest survey of shoppers, Russian recession pushed out 14 million people out of the middle class and the recovery will not start before 2018.

On the positive side, for the past months, the stabilization of oil prices eased the pressure on the Russian economy and strengthened the Rouble. The further stabilization in oil prices will mean that the outbound tourism will level off for the coming New Year Holidays.

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