Russians' real incomes and wages have begun to decline
After three years of continuous growth, Russians’ real incomes and wages have begun to decline.
According to estimates by the HSE Development Center, in the first half of 2026, real disposable income fell by 0.23%, and real wages by 0.15%, compared to the end of last year.
Experts attribute this to an economic slowdown, falling corporate profits, and a decline in income from entrepreneurial activities. According to official data, Russia’s economic growth in January–May was only 0.3%, while civilian sectors are sinking deeper and deeper into recession.
Small businesses are facing additional pressure following tax hikes. According to Sberbank, between 12,000 and 15,000 companies in Russia cease operations each month due to economic reasons.
Amid declining profits, businesses are increasingly cutting personnel costs. According to a survey by the Russian Union of Industrialists and Entrepreneurs, 40% of large companies are already reducing employee costs, and some employers plan to cut staff or salaries.
Source: The Moscow Times.
In May 2026, Ukraine’s real GDP grew by 0.9% year-over-year, continuing the recovery trend. This positive momentum has been recorded for the third consecutive month following a decline at the beginning of the year.
In the first half of 2026, expenditures from the general fund of Ukraine’s state budget totaled 2.23 trillion UAH, which is 354.1 billion UAH (or nearly 19%) more than in the same period last year.
