In russia, Level of Poverty Is Being Underreported, While Millions Live Paycheck to Paycheck

russia is becoming poorer and increasingly living on payday credit. Despite the kremlin’s official statements about successes in reducing poverty, real economic indicators suggest the opposite: the population’s debt burden is growing, purchasing power is falling, the gap between official statistics and the actual standard of living is widening.

The total debt of russians has already reached about 45 trillion rubles. People are no longer taking out loans for major purchases, but to cover basic expenses so they can “make it to payday”.

Officially, the level of poverty is estimated at approximately 6.5% of the population; however, this figure is based on an underestimated subsistence minimum – about 17,000 rubles. At the same time, russians themselves consider the poverty line to be three times higher – about 50,000 rubles per person. This indicates the kremlin’s traditional and significant downplaying of the scale of the problem.

The situation is exacerbated by inflation, sanctions, and the militarization of the economy, making even basic expenses increasingly unpredictable. As a result, even households that are not formally considered poor find themselves in a financially vulnerable position.

Against this background, the number of self-employed individuals is growing rapidly. Currently, this figure exceeds 15 million people (+26.8% in 2025). However, experts emphasize that this is not a sign of entrepreneurial activity, but rather a necessary step for survival. russians are turning to self-employment due to a lack of decent job openings, low wages, and businesses’ reluctance to expand their workforce.

Self-employment is largely concentrated in the service sector and small businesses, which do not generate a significant economic impact. This model allows for a minimal income but cannot replace industrial development or ensure long-term economic growth.