Russians Face Decline in Real Incomes and Salaries

Real wages and incomes of Russian citizens have begun to decline after three years of growth. In the context of economic cooling and recession, Russians are feeling the effects of the war on their wallets. In June, real incomes were 0.23% lower than at the end of last year, while in May, real wages decreased by 0.15%. As a result of the first half of the year, the dynamics of population incomes turned negative. Economic growth in the country has practically stalled (0.3% from January to May), and small businesses are suffering from high taxes, leading to the closure of 12,000 to 15,000 organizations monthly. The decline in enterprise incomes is forcing businesses to cut personnel costs: 40% of large companies are optimizing these expenses, with some planning layoffs or salary reductions. The decrease in interest rates on bank deposits is also reducing income from property, which accounts for up to 11% of the structure of population incomes. Economic pessimism has reached record levels: 56% of Russian citizens report a decline in their standard of living, the highest figure in the last 20 years. 60% of respondents are confident that the economic situation will worsen. Low incomes have become the main problem for 48% of Russians. As a result, Russians are massively saving on clothing and footwear, leading to a 10% decrease in purchases from January to May 2026 compared to the same period last year.

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