Macroeconomic environment

In 2016, domestic passenger traffic increased by 4.7%, while internationalpassenger traffic declined by 4.8%

8.4 % decline in inflation in 2016
Key economic growth indicators, % year-on-year Source: Rosstat.
Indicator 2016
Gross Domestic Product 99.8
Consumer Price Index 107.1
Investment in fixed assets (9M 2016) 97.7
Real household disposable income 94.1
Real wages 100.6
Change in the number of unemployed 99.5
Retail turnover 94.8
Paid retail services 99.7

In 2016, consumer price inflation declined to 7.1%. In the previous year, inflation was 15.5%. Consumer demand depends on, among other factors, the two most critical parameters: actual take-home pay, which remained flat year-on-year, and the number of unemployed, which decreased by 0.5%.

The period from February to July 2016 saw an active accumulation of income in cash. By July, the positive balance of household income and expenditure amounted to RUB 252.3 billion (according to Rosstat). In August–September household consumption was on the rise; accumulated income in cash started to decline driving an increase in transport mobility (due to pent-up demand).

Cash income and expenditure balance (on an accrual basis for the period from February to November 2016), RUB billion Source: Rosstat.

Pent-up demand along with certain improvements in the macroeconomic environment boosted population mobility in Q3 2016 and helped increase the overall passenger turnover in 2016.