Russian economic indicators

Official average monthly Income: 1998 - 1,006.5 roubles 2001 - 2,999.2 roubles Consumer price index (Dec '97 = 100): 1998: 184.4 2001 (until Sep): 344.6 Man days lost in strikes: 1998 - 2.88m 2001 (until end-Aug) - 24,000 Retail sales (billion roubles): 1998 - 1,069.3 2000 - 2,387.4 2001 (until Sep) - 1,938.6 Source: Russian European Center for Economic Policy

More babies indicate that they are generally happier about bringing a child into the world.

Since Soviet times, millions of Russians have grown vegetables on allotments or in their gardens to supplement their shopping basket. By some estimates, home-grown food accounts for as much as half the national diet.

Economic abyss

Following the financial crisis in 1998 the birth rate collapsed across Russia, reflecting the widespread belief that the country was sliding into an economic abyss.

Few young couples felt much like having children while struggling to keep their jobs.

"After two years of strong industrial growth driven by strong net exports Russian economic growth is now being led by consumer consumption," says Peter Westin, senior economist at Aton Brokerage in Moscow.

Russia enjoyed growth of 8.3% last year and analyst predict more than 5% growth by the end of 2001.

Russians expect to have more money to spend

The continued confidence also illustrates that the underdeveloped Russian economy has so far remained insulated from fears in other countries over the general economic slowdown and spectre of world recession that looms over other major economies.

Apart from exports of oil and primary materials such as aluminium and steel, Russia has few products to sell of interest to the West.

Barter economy

For much of the 1990s, Russian consumers had no money to buy goods with. Many factories, burdened by huge debts and with little cash, were forced to pay suppliers and employees with the goods they produced in "barter" deals.

Train station platforms across the country were flooded with people trying to exchange their salary of china dinner services or cut glass decanters to passengers passing through town.

Other workers were even less lucky and went unpaid for months and even years.

But all that has now changed. Since the banking crisis of 1998, Russia's economy has been something of a success story.

Ballooning profits

The Russian export industry has seen profits balloon 10-fold due to high oil and commodity prices and a more competitive devalued rouble.

As a result workers are now being paid their salaries in cash and most wage arrears have been cleared.

With little trust in a banking system that has robbed people of their savings deposits three times since the collapse of communism a decade ago, Russians prefer to spend their money as quickly as possible.

This is good news for the rest of Russian industry. With domestic demand strong, Russian companies in other sectors such as food processing and furniture manufacturing are taking advantage of the good times to boost production and improve efficiency.

"Domestic demand is now supporting stronger growth in sectors which can compete with imports," says Aton's Mr Westin.

Demand for household goods

Markets in Moscow selling electronic goods are doing a roaring trade and a string of big name shopping centres are due to open before year-end.

The Dutch chain of Spar supermarkets and Metro, the German cash-and-carry giant, are both opening a series of stores around the capital.

Ikea, which opened its first store in March 2000, has announced plans to open two more by late 2003 and expects Russia to become one of its highest-grossing countries.

As winter sets in and the snow begins to fall, Russian couples across the country will soon start dipping into their reserves of pickled cucumbers and planning ways to spend the long lonely winter evenings.

Only spring will reveal whether next year potato planting will continue to fall and the number of babies rise yet again.