Economics

2019 Brings Yet More Bad News for Russian Consumers

  • Incomes shrank in January, retail sales growth slowed
  • Central bank has warned about risks from consumer borrowing

Shoppers walk through the Vegas mall in Moscow.

Photographer: Andrey Rudakov/Bloomberg
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After five years of falling or stagnant incomes, Russian consumers are facing yet more bad news in 2019.

First came the Jan. 1 increase in the value-added tax by two percentage points. A few weeks later, the central bank signaled it could limit one of the key sources battered shoppers have been relying on to keep up their spending: a boom in consumer lending.