The Maryna Roscha Ramstore in Moscow
Five Million Families in Russia Earn Over $30,000
Kommersant, September 6, 2007
Five million families in Russia annually earn more than $30,000, according to the report of
Rosgosstrakh insurer. The number grew by over 60 percent over a year.
Given that the family size averages 2.7 persons here, roughly 13.5 million have the income above the medium one. Besides just wealthy, Russia has 160 families that are the millionaires in terms of the U.S. dollars and 12,000 families have revenues above $5 million. It isn't surprising that 80 percent of millionaires live in Moscow and in the Moscow region.
The wealthiest category of the Russians (revenues above $5 million) widened by a half past year. The families with revenues of $30,000 to $100,000 manifested the highest growth of 71 percent.
Click on this link to read the full story. Click on the extended post to read excerpts from coverage of the Russian economy by Reuters and the Wall Street Journal.
Moscow at night
Russia, from bust to boom. What now?
By Douglas Busvine
Reuters, September 7, 2007
MOSCOW - Russia has gone from bust to boom in less than a decade to become one of the world's most dynamic emerging markets.
Since the devaluation and default of 1998, Russia's gross domestic product has surged to $1 trillion, its economy is growing at a clip of over 7 percent and an expanding middle class is enjoying prosperity unimaginable in the Soviet era...
Outside the resources sector, business is booming. Mobile phone companies MTS (MBT.N:
Quote, Profile, Research) and Vimpelcom (VIP.N: Quote, Profile, Research), whose CEOs will speak at the Reuters Summit, have just posted second-quarter earnings up 72 percent and 84 percent respectively.
Wimm-Bill-Dann (WBDF.MM: Quote, Profile, Research), Russia's leading dairy produce company and another Summit guest next week, has announced a 40 percent gain in first-half sales. All three companies are eyeing acquisitions in other ex-Soviet states.
Banking has been booming too, although the U.S. subprime mortgage crisis has triggered a
liquidity squeeze in Russia. The central bank has kept banks afloat by pumping in ready cash, but it is too early to sound the all-clear.
In 1998, the central bank's vaults were almost empty. Now it has accumulated over $400 billion
in reserves, the world's third largest, enough to ride out a big financial shock.
Click here to read the full story from Reuters.
Russia Increases Growth Forecast For Hot Economy
By Lidia Kelly
Wall Street Journal, September 7, 2007
MOSCOW -- The Russian Central Bank raised its economic growth forecast for this year,
underlining the resilience of the current boom in Russia despite turmoil in global credit markets.
Central Bank Deputy Chairman Alexei Ulyukayev told a conference that gross domestic product
should grow 7.5% this year, up from an earlier growth estimate of 6.5%, and above the recent forecast of 7.4% from Economy Minister German Gref.
The economy grew 7.8% in the first half of the year, according to official data, mainly driven
by investment spending growth of more than 20% for the year and consumer demand, spurred by the increase in disposable income.
Mr. Ulyukayev also echoed Mr. Gref in saying that consumer prices won't rise by more than 8% in 2007, the lowest annual rate since the breakup of the Soviet Union.
Click here to read the rest of the story at WSJ.com (subscription needed).