Data shows inequality increases in Russia

(MENAFN) The latest findings from Rosstat, Russia's official statistics agency, underscore a concerning trend of widening income inequality within the country in 2023. According to the report on the social and economic landscape, the Gini index, a key measure of income distribution, rose to 0.403, signaling an increase from the 2022 figure of 0.395. This surge in the index indicates a deepening income gap among the Russian population.

The report highlights that, based on preliminary data, the top 10 percent of earners in 2023 accounted for 29.7 percent of the total income, a slight uptick from 29.1 percent in the previous year. Conversely, the 10 percent least advantaged population saw a marginal decrease, accounting for 2.0 percent of the total income, down from 2.1 percent in 2022.

While the report notes a positive trajectory in real wages, with a notable increase of 7.8 percent in 2023, it also emphasizes the importance of considering wages adjusted for inflation. Real wages reflect income in terms of the goods and services that can be purchased, offering a more accurate representation of purchasing power.

According to the preliminary data, the average monthly salary at the end of 2023 stood at approximately USD810. President Vladimir Putin, addressing the Federal Assembly, acknowledged the challenges posed by rising inequality and directed the government to prioritize reducing the current 9 percent poverty rate to below 7 percent by 2030. The report raises critical questions about the effectiveness of economic policies and social programs in addressing the growing divide and underscores the need for comprehensive strategies to achieve sustainable and inclusive economic development in Russia.


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