Russia: The decline in real incomes for Russians has continued for the 10 months since November 2014, according to The Moscow Times. The Economic Development Ministry estimates that real wages could fall by 9.8 percent in ruble terms in 2015 as compared to the previous year. According to a study by Bank of America Merrill Lynch, real annual wages during the first half of 2015 were lower in Russia than China and Mexico . That represents a 33 percent drop in dollar terms from the 2014 real annual wage in Russia of $839.7. The ministry expects wages to begin rising by the first quarter of 2016, and for salaries to rebound to 2014 levels only as late as 2018. In theory, the current situation should give Russia a significant competitive advantage in the global market by prompting investors to switch their attention away from the slowing Chinese economy where labor prices are rising and move their production facilities to this country and take advantage of the cheap labor available. Cheap labor is an important factor in making a country attractive to investors.
(news.financializer.com). As
reported in the news.
Tagged under Russia, annual wages topics.