Skip to content
Subscriber Only

Wages Below China Spark Russian Dreams of Manufacturing Revival

  • Real wages probably tumbled for 10th straight month in August
  • Bank of Russia sees boost for companies from cheaper labor

It’s taken a currency crisis and the biggest collapse in wages under President Vladimir Putin to put Russian workers on a more level playing field.

The decline in nominal salaries has probably pushed them below Chinese earnings in dollar terms, according to Renaissance Capital and Bank of America. Data set to be released this week will show that Russian wages adjusted for inflation plummeted for a 10th month, falling 9 percent in August and weighing on retail sales, according to the median estimates in Bloomberg surveys.