Russians to start spending much again

12 Jul 2017

The economic recovery affected the financial behavior of the Russian population. If two years ago, citizens preferred to save money expecting another deterioration of the situation, but now they spend everything on current needs, the National Financial Research Agency reports.

Source: Fashion United (RU)

Izvestia newspaper refers to experts' opinion, this is due to deferred demand: at the background of economic stabilization, citizens no longer postpone purchases that were planned earlier. In addition, following the key rate, the yield on bank deposits also decreases, which makes it less attractive - Russians interest in cheaper loans.

According to the NFRA (NAFI), as early as 2015, 47% of the country's citizens tried to first postpone a certain amount of money, and then spend the rest. In 2017, almost the same number of Russians - 46% - spend all their money on current needs and do not save anything. And the strategy "to spend and not make savings" is inclined to choose economically active citizens of 35-44 years old. Two years ago, those were only 15%.

- Now a third of Russians have savings (32%), - Izvestia writes. - Over the past few years, share of the saving population has fluctuated was 27-32%. It should be noted that the most prone to save are young people (18-24 years old) and representatives of the older generation (55+): in these age groups, the share of savings is 36-37%, while among the economically active group of 35-44 - only 29% .

According to experts, first of all the change in the savings behavior of Russians is connected with the Russian economy's leaving the crisis. This year, according to the Ministry of Economic Development of Russia, GDP growth is expected at 2%, while in 2016 it was recorded a fall in GDP by 0.6%, and in 2015 - by 3.7%. According to Rosstat, inflation in 2015 was at the level of 12.9%, in 2016 it fell to 5.4%, this year the price growth has decreased to 4.1%. The economic recovery pushed the Russians to large-scale spending, which they previously preferred to carry over, saving money "for a rainy day".

- In 2017, the situation in the economy has become more stable compared to 2015-2016, and many of Russians have decided to make major purchases, which were postponed for a variety of reasons, Roman Tsivinyuk, Vice-president at SMP Bank, said.

According to Anton Tabakh, Chief Economist at Expert RA agency, the accumulated deferred demand is the behavior typical for the period of inflation reduction in the country.

 







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