Sberbank analysts reported a reduction in the middle class in Russia

The share of Russians who consider themselves the middle class over the past two years has declined by ten percentage points. This is stated in the next issue of the consumer confidence of Russians, the Consumer Index Ivanov, prepared by Sberbank Investment Research, the analytical unit Sberbank CIB. The review entered Slon Magazine on October 10.

In the third quarter of 2014, the share of Ivanovs, identifying themselves as a middle class, reached 61%, and in the same quarter of 2016 decreased to 51%.

“Thus, from the beginning of an economic recession, 14 million people moved from average to class with less income, since the costs grew faster than the salary,” analysts noted.

At the same time, the review authors believe that in the future the share of the middle class in Russia will not be reduced, since "the growth rate of wages will be at the inflation level." At the same time, the “Ivanov Index” actually in the third quarter of the current year grew to minus 15% against minus 17% in the previous quarter. At the same time, in the first quarter, the index strengthened for the first time in six months, amounting to minus 22%.

The Ivanova Index is calculated once a quarter based on the dynamics of consumer expenses, savings, consumer behavior and the level of consumer confidence in general. The indicator is named after the most common surname in Russia.

According to Rosstat, the incomes of the population in January-August 2016 decreased by 5.8%, while in August the pace of their fall (8.3%) became maximum since 2008. In general, in 2015, the population’s incomes decreased by 4.3%, in 2016, as the Ministry of Economic Development predicts, the decline will be 4.7–4.9%.