(Adds background, details)
MOSCOW, Jan 25 (Reuters) - Real wages in Russia rose less than expected in December and industrial output continued to fall, data showed on Thursday, putting pressure on the economy and living standards ahead of a presidential election in March.
Russia's oil-dependent economy began a fragile recovery in 2017 after two years of recession, triggered by a sharp drop in global commodity prices as well as sanctions imposed by Western countries against Moscow for its role in the Ukraine crisis.
But gross domestic product unexpectedly contracted in November, hit by a drop in industrial production. Russia's industrial output fell 1.5 percent year on year in December , while real wages increased 4.6 percent. Analysts polled by Reuters had expected that real wages, which are adjusted for inflation, would rise 5.2 percent.
Incumbent Vladimir Putin is widely expected by pollsters to win the March 18 presidential election comfortably, though some Kremlin-watchers say lower living standards could prompt voters to stay home in protest.
"There is a risk that real disposable income will continue to fall for the fifth year in a row," said Loko-Invest analyst Kirill Tremasov.
"In particular, the fall in January this year could be around 10 percent in annual terms, considering that there was a one-time payment to pensioners in January 2016."
Capital Economics analysts said the December data suggested Russian GDP growth may have slowed to 1 percent in annual terms in the fourth quarter of last year, compared to 1.8 percent in the previous quarter.
Average nominal monthly wages earned by Russians rose 7.2 percent year on year to 50,500 roubles ($904.25) in December, the statistics service, or Rosstat, said.
Rosstat also revised November data. It said on Thursday nominal wages rose 8.4 percent and real wages increased 5.8 percent in November compared with a 8.3 percent and 5.4 percent increase, respectively, reported a month ago.
Real disposable income declined 0.1 percent in November, according to the latest Rosstat data, less than a 0.3 percent decline reported earlier.
Rosstat provided the following data:RUSSIAN WAGES NOMINALDec 17Nov 17 Dec 16
Average wages (roubles)50,50038,848 47,554
Yr/yr percent change +7.2+8.4 +8.3
RUSSIAN WAGES REAL
Yr/yr percent change +4.6+5.8 +2.8
REAL DISPOSABLE INCOME
Yr/yr percent change -1.8-0.1 -7.3
NOTE - For key Russian indicators click here . ($1 = 55.8472 roubles)
(Reporting by Polina Nikolskaya and Zlata Garasyuta; Writing by Jack Stubbs; Editing by Andrey Ostroukh and Mark Heinrich)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.