St Petersburg City Review

ST PETERSBURG HIGHLIGHTS

As of 2016, St Petersburg's labour productivity was only 3.4% above the level in the rest of Russia and far behind the average in urban Eastern Europe. The city's stronger concentration of manufacturing, which still lacks significant high-tech utilisation, and insufficient supply of qualified personnel for high-value-added services act as constraints on better worker efficiency.

High labour force participation boosts income

High labour force participation rate is a primary factor driving up disposable household income in St Petersburg in the national context. In 2016, the average household income in the city was 13% above that in the rest of Russia, although 32% below that of Moscow, due to lower labour productivity in St Petersburg.

Greater spending on necessities

Given the city's income advantage of 13%, household spending (excluding transport and housing) in St Petersburg disappoints with just a 2.5% premium over the rest of Russia in 2016. Necessity spending (i.e. food) is more pronounced in the city, leaving less room for discretionary consumer categories.

Higher transport costs

Although St Petersburg is generally more affordable compared with Moscow, the households in the former spent on average 29% more on housing and transport than those in the rest of the country in 2016, primarily due to higher transport expenses in the city.