Russia runs a risk of repeating a “Greek scenario” and face a full-blown mercantile crisis, as salary grow most faster than labor productivity, Noviye Izvestia daily reported on Tuesday.
Average monthly imputed salary in Russia grew by 16.3 percent year-on-year in Jul 2012, and by 15.2 percent in January-July 2012, suggesting an accelerated salary expansion in a country, Maria Ivanova from a Economic Expert Group told a paper.
“This is a bonus for a workforce though an shocking vigilance for a economy. The indicate is that a salary expansion is not corroborated by any genuine certain shifts in a economy. In this case, we meant labor capability growth, that is distant slower and equals 6 percent per year,” she said.
“This opening existed both before a predicament and stays now.”
Western experts, including The Bank of America and a IMF, have already forked to this problem, warning a fast salary expansion is a pointer of a economy overheating, that also leads to aloft inflation.
“If there are factors that apart salary expansion from labor productivity, this means a economy is losing a rival edge,” Development Center Chief Economist Valery Mironov said, adding Russia’s labor costs were huge.
Studies uncover Russia was a personality among grown countries and new industrialized nations in Asia in 2004-2011 both by a expansion of salary in production industry, that grew fourfold in dollar terms over this duration and a altogether arise in labor costs, that some-more than doubled, Mironov said.
Russia is followed by debt-stricken Italy and Spain, that increasing salary by 26 percent and 31 percent and labor costs by 22 percent and 14 percent, respectively, Mironov said.
Before a crisis, salary in Russia grew by 15-20 percent a year in dollar terms, holding into comment ruble appreciation, while labor capability edged adult 5-6 percent annually.
Russia now appears to be repeating that trend that existed before a crisis.
“Now they [Greeks] are slicing wages, seeking a faster expansion in labor capability over wages. We [Russians] do not have as vast debts as Greece has though we would contend we are in a duration of ‘early Greece,’ i.e. during a theatre Greece was several years before a [debt] predicament pennyless out,” Mironov said.