"The best way to predict the future is to create it." — Peter Drucker
Russian citizens’ perceptions of improving living standards persist despite salary growth for new employees beginning to wane, according to an in-depth analysis by the Financial Times (FT). This phenomenon occurs against the backdrop of President Vladimir Putin’s military operations in Ukraine, now in its second year. The FT’s research reveals a complex economic picture, highlighting the disconnect between slowing wage increases and Russians’ perceptions of financial well-being.
The report indicates that while salary growth for new hires is cooling, it is not yet significant enough to alter public opinion on the war. Russians’ sentiments of financial improvement, measured by consumer confidence indices, remain surprisingly robust. This apparent contradiction can be attributed to several key factors.
Firstly, the Russian economy, propelled by sanctions-driven import substitution and a boom in exports of raw materials, has exhibited resilience in the face of widespread economic penalties. This economic model, fueled by the war, has resulted in a surge of revenue for the state, enabling significant spending on social programs and military operations. The government’s financial support for families, including increased pensions and welfare payments, has contributed to the perception of heightened financial security among the population.
