Personal Incomes to Fall 50 Percent: Expert Speaks About the Coming Crisis in Russia

Personal Incomes to Fall 50 Percent: Expert Speaks About the Coming Crisis in Russia
Many experts believe that the Russians have to prepare for the next economic crisis. Traders and economists say this may happen next year.

In the post-Soviet years, residents of the Russian Federation faced serious financial and economic crises three times. The first economic crisis took place in 1998 and is still considered one of the most severe in the country’s history. The second financial and economic crisis occurred in 2008-2010, and in 2014 the whole country suffered from a sharp fall in the Russian currency. Many experts believe that the Russians should prepare for the next economic crisis. According to traders and economists, this may happen next year. Is that so? Is it time to get ready for the crisis? Znak.com reporter has talked to financial analyst and trader Stepan Demura about it.

Personal Incomes to Fall 50 Percent

Demura is confident that one of the most severe crises in Russian history is coming up.

“Compared to what awaits us, the events of 2008 will look like a pre-roll ad for a movie,” Demura said.

Journalists asked how badly the new financial crisis would affect the ordinary people of the country, because the standards of living have been already declining since 2014 and everyone has got used to it. Demura said it still might go down even further.

“There is still room for falling. Personal income will drop by half. For example, if your salary is 30 thousand rubles, it will be 15 thousand rubles. At the same time you will be pressed by the government, which continues raising duties, taxes, rates, fees, etc. You just need to understand that the sanctions have hit the state coffers significantly. This means that they need to be filled with something. And what can they be filled with, if not with people’s money? The government logic is very simple: if the people are silent, it means they are not against it,” said the expert.

Invest in yourselves

Summing up, it can be assumed that in the coming years Russia will face a new economic crisis. What should we do in this situation? What is the way to get ready for it?

Stepan Demura advises to invest some money in gold and dollars, and some money in oneself.

“I'd give only one recommendation, which is to sell everything in sight and invest in gold, as well as in dollars. In addition, you should not forget about yourself: invest in your health, knowledge and education,” Demura said.