As well as exploring the outlook for the Russian economy in 2018-2021, the report also examines the impact of the country’s ageing population for consumer brands.
Key findings include:
- Russian GDP grew in 2017 by 1.5%, compared to a 3.7% global average, and is projected to rise no more than 2% annually in 2018-2021, suggesting that companies need to adjust for muted growth.
- Russia remains highly dependent on volatile oil and gas prices (yet, as oil price approaches $70 per barrel, it boosts competitive US oil production).
- Despite the economic situation stabilising since 2016, Russia still ranks low on our global Consumer Confidence Index, with the country’s Primary Index score (measuring consumer attitudes) standing at 41% in the first quarter of 2018, compared to a global average of 51%.
- The 55+ age group has significant purchasing power in Russia, accounting for 29% of all current bank accounts, 26% of concert visits, and 22% of appliance purchases in 2017.
- The older age group in Russia surpassed teenagers in terms of internet audience size in 2017 (the weekly internet audience share for those aged 55+ was 13.4%, compared to 13.1% of those 10-19).