Unemployment in Russia has dropped to a record low, under these conditions, real wage growth is accelerating and could outpace productivity growth, the Bank of Russia said in a press release after a meeting of its board of directors on Friday.
"At present, the capacity to expand production in the Russian economy is largely limited by the labor market conditions. Unemployment has dropped to a record low. Labor shortages are increasing in many industries amid the effects of the partial mobilization. Under these conditions, real wage growth is accelerating in these sectors and could outpace productivity growth," the regulator noted.
The Bank of Russia also marked the increasing contribution of fiscal policy to the dynamics of domestic demand.
"The additional fiscal easing announced by the government will support economic activity in 2023," according to the statement.
