St Petersburg City Review

Cities

About This Report

Mar 2017

Generating 5% of Russian GDP in 2016, St Petersburg is a distant second to Moscow (26%). Nonetheless, St Petersburg is an important industrial centre and logistics gateway, as well as an aspiring start-up hub. On the consumer side, the cultural capital of Russia, as St Petersburg is known, has one of the most unequal income distributions in Europe. This puts pressure on the local middle class and its associated consumer spending.

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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.

ST PETERSBURG REVIEW AT A GLANCE

Understanding St Petersburg Review structure
Chart 1 Overview
Key facts on St Petersburg
Summary 1 Key Facts On St Petersburg 2011, 2016, 2021

ST PETERSBURG HIGHLIGHTS

History
Delimitation of the metropolitan region
Chart 2 Map Of St Petersburg Metropolitan Area
Main business districts

ECONOMY OF THE CITY

Industrial make-up
Chart 3 Industrial Composition Of St Petersburg 2016
Chart 4 Labour Productivity: Selected Cities 2016
Recent developments and outlook
Chart 5 Dynamics Of Real GDP In St Petersburg, And Other Cities In , 2011-2021
Summary 2 Labour Market Changes In St Petersburg 2011, 2016

CONSUMER PROFILE

City demographics
Chart 6 Population By Age 2016
Chart 7 Drivers Of Population Growth In St Petersburg 2011-2016
Household income
Chart 8 Household Distribution By Income In St Petersburg 2016 And 2021

CONSUMER EXPENDITURE

Structure of household budget
Chart 9 Comparison Of Household Expenditure In St Petersburg And , 2016
Summary 3 St Petersburg Household Budget Structure By Consumer Expenditure Item, % of total, 2011, 2016, 2021
City lifestyle
St Petersburg's Foreign Tourism Suffers Little Damage From Geopolitical Tensions
Kitchen Appliances A Priority In A Constrained Consumer Durables Market
City affordability
Housing
Chart 10 Household Expenditure On Housing: Selected Cities 2016
Transport
Chart 11 Household Expenditure On Transport: Selected Cities 2016

DEFINITIONS

APPENDIX

Summary 4 GDP Development, 2011, 2016, 2021
Summary 5 GDP By Origin, Current Prices, US$, Million, 2011-2016
Summary 6 Population And Labour Force, 2011-2016
Summary 7 Employed Population By Economic Sector, % of total, 2011-2016
Summary 8 Population By Sex And Broad Age Groups, ‘000, 2011-2016
Summary 9 Population Growth, 2011-2016
Summary 10 Forecast Population Growth
Summary 11 Population By Educational Attainment, 2011-2016
Summary 12 Structure Of Consumer Expenditure By Main Category, 2011-2016
Summary 13 Consumer Expenditure By Main Category, Per Household, Constant (2016) Prices, US$, 2011, 2016, 2021
Summary 14 Households By Income Band, % Of Total, Constant (2016) Prices 2011, 2016, 2021
Summary 15 Households By Income Band, ‘000, Current Prices 2011-2016
Summary 16 Inflation, 2011-2016
Summary 17 Transport Indicators, 2011-2016
Summary 18 Possession of Consumer Durables, % of Households, 2011, 2016, 2021