UPDATE: Kudrin: Russians’ real income fall new challenge for economy

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ST. PETERSBURG, Jun 16 (PRIME) -- The real disposable income of Russians has been falling for three straight years posing a new, serious challenge for the economy, Alexei Kudrin, former finance minister and a deputy chairman of the presidential economic council, said at the St. Petersburg International Economic Forum Thursday.

“We will not be competitive and most probably we will lag behind other countries, and as a result we will be technologically unable to ensure advantages in any sphere including defense. These are, in general, serious challenges. I think, no politician would like the events to develop this way,” Kudrin said.

He said that during the 1998 and 2008 crises the real income fell for only one year and then returned to growth.

If the government manages to maintain inflation at 4% for several years, it would help the Russian investment market to develop, Kudrin said. He also said that this inflation goal is realistic if oil prices are at U.S. $40–60 per barrel.

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