Official: Wider poverty threatens to undermine Russia’s growth

MOSCOW, Jun 28 (PRIME) -- The number of Russians living beyond the poverty level rose to 22 million in January–March from 19.8 million as of the end of 2016, which can hit economic growth in 2017, Audit Chamber head Tatyana Golikova told the Federation Council, parliament’s supreme chamber, on Wednesday.

People earning less than the living wage accounted for 15% of the population in January–March, while under a government plan, the percentage must decline to 12.9% in 2017.

“A drop in the households’ real disposable income has a negative impact on consumer demand, which continues to decrease. It (real disposable income fall) amounted to 0.8% over five months and the forecast implies that it must reach a growth rate of 1.9%,” Golikova said.

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