MOSCOW: Russians' disposable incomes declined further in the second quarter as inflation and debt costs weighed, data showed on Wednesday, adding to concerns about persistently anaemic economic growth.
Net inflation-adjusted household incomes fell 0.2pc year-on-year in April-June after a drop of 2.5pc in the first quarter, federal statistics service Rosstat said.
Disposable incomes are falling for the sixth year running, acting as a brake on the economy and hitting the approval ratings of the Russian leadership.
The International Monetary Fund cut its 2019, growth forecast to 1.2pc on Wednesday and said that, without deeper structural reforms, long-term growth was projected to settle around 1.8pc.
Rosstat said real incomes declined due to consumer inflation and rising debt servicing costs. Kirill Tremasov, head of research at Loko-Invest and a former research department head at the economy ministry, said further drops were likely this year.
Rosstat data showed real wages - adjusted for inflation - grew 2.3pc in June, below analysts' expectations of 2.8pc.
Its monthly economic report also showed retail sales, a gauge of consumer demand, rose 1.4pc in June, above analysts' expectations.
Overall, "June's activity data suggest that following a weak Q1, Russian GDP growth slowed in Q2," research firm Capital Economics said in a note.
"The overall picture remains one of sluggish growth as the effects of weak real wage growth at the start of this year continue to weigh on spending."
Economic expansion slowed to its weakest since late 2017 in the first quarter, also hit by volatile oil prices and risks of new sanctions that have soured the investment climate.
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