S&P expects Russians’ real incomes to increase in 2018 amid growth of lending

S&P international rating agency forecasts the growth of real disposable incomes of Russian citizens in 2018 amid the growth in retail lending in the country. That is according to the agency’s report on the development of the Russian banking sector in 2018.
According to S&P experts, growth in the retail lending segment could be about 13-15% in 2018. The level of real disposable incomes and customer confidence can gradually increase in the long term due to relatively low inflation rates, the report says.
S&P also marks recovery in corporate lending, although it predicts lower growth rates than in 2013-2016.
“The companies significantly reduced the debt burden in the last few years and adhered to a very balanced approach with respect to new investments and borrowings,” the agency explained.
Thus, according to S&P forecasts, the volume of lending to legal entities in 2018 may grow by 4-6%, and in general the assets of the Russian banking sector will grow by 7-10% amid a gradual recovery of the Russian economy.
S&P view is based on the agency’s forecast of oil prices at an average level of about $60 per barrel in 2018 and $55 per barrel in 2019, as well as the expected economic growth rate of 1.8% in 2018.


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