Happy Russians holding back economic growth, says study

MOSCOW - Russia’s economic development is being held back by the financial satisfaction of a large segment of the population, a state-owned insurer has said.

A study conducted by the Rosgosstrakh insurance company established a direct link between Russians’ satisfaction with their living standards and economic growth.

“The more the consumers are unsatisfied with their lives, the higher their economic activity is… On the whole, today’s state of affairs in the country satisfies Russians,” the company said.

Russia’s GDP growth is likely to reach 4-5 percent in 2010 and slow down to 2-3 percent in subsequent years, Rosgosstrakh said, after an analysis of consumer sentiments.

The insurer said that about 75 percent of residents of Russian cities are satisfied with their living standards.

The Russian health and social development ministry reported Monday that 2.1 million people in Russia out of a total of 142 million have been officially registered as unemployed.

However, in reality the figure may be much higher as many Russians do not claim state benefits, which are generally extremely low.

–RIA Novosti