Consumer market of goods and services
in the Commonwealth countries in 2000-2007

 

After sharp decrease in sales of goods in constant prices which was characteristic of the first half of the 90-ties rather high annual growth rates of retail turnover were formed since 2000 year practically in all Commonwealth countries. As a whole for 7 years (2001-2007) the real volumes of turnover increased in Uzbekistan in 1,8 times, Azerbaijan, Armenia, Russia in 2,2 times, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan - in 2,3-2,4 times, Belarus - in 2,8 times, Ukraine - in 3,8 times.

In the period of 2000-2007 there was stable decrease of price factor impact on the development of retail turnover in the majority of the CIS countries. In the second half of 2007 sharp surge of price growth was observed in some countries. As a result of this fact the share of price factor increased considerably in the composition of total growth of turnover: in Azerbaijan, Armenia, Belarus and Kazakhstan it was higher than in the previous year by 7-12 percentage points, Kyrgyzstan by 16 points, Tajikistan 27 points. In Moldova, Russia and Ukraine the share of price factor decreased.

Import earnings influenced noticeably the development of consumer market in some Commonwealth countries. For instance, by estimate, in Tajikistan in 2007 commodity resources for domestic consumption were formed traditionally by 70% with the account of import deliveries, in Armenia, Kazakhstan and Kyrgyzstan by 58-66%. In Belarus and Russia commodity resources were formed by 54% and 66%, respectively, with the account of goods of own production. In all countries commodities imported from other countries of the world (from 62% to 95%) predominated.

In conditions of active privatization and development of private entrepreneurship which took place in trade currently retail turnover of many countries of the Commonwealth is formed by 85-99,98% by non-state sector, where considerable share belongs to universal, merchandise and foodstuffs markets. At the same time for the past two three years the population of some countries prefers to make purchases in retail network. As a result of this fact the share of trading organizations turnover increased in total retail turnover while turnover of markets decreased. At the same time considerable outstripping of growth rates of sales of goods by trading organizations was formed: in 2007 in comparison with 2006 their turnover in constant prices increased in the CIS countries on average by 23% and markets only by 1%.

In the period after 2000 year there were structural changes upward the share of non-food goods in total retail turnover which in 2007 made up from 35% (Azerbaijan) to 69% (Kazakhstan). It increased to a considerable extent with the account of consumer

durables and household goods and the decrease of the share of foodstuffs occurred in many countries when there was a reduction of the share of bread products (flour, bread and bakery products, cereals, macaroni).

The revival in the sphere of market services which began in the second half of the
90-ties in the majority of the Commonwealth countries became the beginning of their growth in future period and especially after 2000 year. At the same time the dynamics of growth of volumes of market services in the countries differed noticeably. For instance, in 2007 the population of Russia purchased market services in physical terms more than in 2007 in 1,5 times, Belarus, Kyrgyzstan, Moldova in 1,9-2,2 times, Tajikistan, Uzbekistan in 2,4-2,5 times, Azerbaijan - in 3,5 times.

The situation on the market of market services in some countries was determined by the influence of prices and tariffs growth for their selected kinds, in other by the increase in sales of these services. In 2006-2007 the share of price factor was predominant in Moldova, Russia, Tajikistan and made up 63-97% of total value growth. At the same time in Armenia and Kyrgyzstan value growth was secured mainly by increase in sales of proper services to population; in Azerbaijan and Belarus these ratios were equal.

In some countries the share of state sector remains very high in total volume of market services (from 18% to 59%); non-state sector, mainly private one, takes dominant position in volume of everyday services (81-99%).

Everyday services, passenger transport, communications, housing and communal services make up stably 65-80% in total services consumed by population.

In the 90-ties in connection with price growth for services related to leisure (cultural and entertainment, tourist and excursion services, physical culture and sports) the number of users reduced sharply and correspondingly their share in total market services. After 2000 there was the reverse tendency. In 2007 the share of these services varied from 3-5% in Azerbaijan, Armenia, Kyrgyzstan, Moldova, Russia, to 7% in Belarus, but by 4-10 percentage points lower than in 1990.

Active replacement of a part of free educational and medical services by paid ones created prerequisites for noticeable growth of their share in total market services. If in 1990 in the Commonwealth countries medical services made up 0,4-1,6%, in 2007 1,5-5,0% of total market services, educational services 0,4-2,4% and 3,0-10,2% respectively.

 

Brief methodological notes and commentaries

 

Total retail turnover refers to sales of goods to households in current prices for final consumption and other types of uses in households. It is computed on the basis of the reports submitted by trading organizations and catering enterprises (all types of property and institutional arrangements) as well as by enterprises and organisations other than trade units (industrial, transport, etc.).

Retail turnover through all channels of sales also includes (on the basis of estimates of national statistical services) sales of goods by individuals (both on the territory of free markets, non-food, food and mixed markets and out of its limits).

For Armenia for 2005, for Moldova for 2004-2007 volume of turnover is given excluding catering enterprises turnover, but including repair and technical services of transport means being in use of citizens; for Armenia for 2006-2007 - excluding turnover of catering enterprises, sale of transport means to population and their technical services. In Ukraine in connection with continuous survey of the network of individuals conducted in 2005 methodology of their accounting was changed.

Total volume of sales of market services to population refer to the payments received by enterprises from households (population) for services provided both in cash and non-cash forms including VAT, excises and similar types of taxes on products.

Volume of market services includes the services rendered by enterprises (organizations) irrespective of the type of ownership and organizational subordination to households for satisfying their cultural, social, medical, judicial and other needs.

Volume of market services through all channels of sales includes also volume of services rendered to population by non-corporative enterprises (belonging to households which produce services for their further sale on the market) and individuals carrying out entrepreneurial activities not registered as legal entities (registerd and not registered).

Receipts from sales of forestry and construction materials sold to households at the places of their work are not included in the sale of services but included in retail trade turnover.

Sale of services is subdivided into the following groupings: everyday services (hairdressers, laundries, ritual etc.), passenger transportation services (including forwarding services), communication services, housing and communal services, educational services, nurseries and similar preschool institutions services, tourist and sanatorium services, cultural services, medical services, physical culture and sport services, judicial services, services of banks, other services.

For Moldova for 2004-2007 volume of market services rendered to population is given excluding repair and technical services of transport means being in use of citizens but including services of catering enterprises.

To define the structure of commodities of retail turnover and kinds of services the majority of the Commonwealth countries apply the national statistical classifications of kinds of economic activities, based on Statistical Classification of kinds of Economic Activities of the European Communities (NACE, rev. 1) and on Statistical Classification of Products by Activities of the European Communities (CPA).

Ratio of volumes of retail turnover and market services to population of the CIS countries as a whole and per capita, respectively to total for the Commonwealth and to average data for the Commonwealth is calculated from the data in national currency, recalculated into russian roubles according to official exchange rates, established by the national (central) banks of the Commonwealth countries yearly average. As a whole for the Commonwealth not included are the data for Turkmenistan, the statistical services of which do not present information.

Data in value terms are given taking into account denomination of national currencies: in Azerbaijan-5000-times denomination of manats in 2006, in Belarus-1000-times denomination of byelorussian rouble in 2000.

Volume indices of retail turnover and sales of market services are computed by comparing the value of turnover (market services) for accounting and base periods in constant prices; volume indices for long period as of certain base (for exemple as of 2000) are computed with the help of chained indices method, i.e. by multiplying annual indices.

Consumer price index (CPI) shows change of value of the basket of consumer goods and services purchased by households over some period of time. It represents a ratio of current value of the basket of consumer goods and services purchased by households in the base period to its value expressed in prices of the base period (as a rule, in prices of preceeding month or year) and does not reflect the impact of changes in income, quantity and structure of consumption of population. The index is computed on the basis of individual indices of consumer prices and tariffs of goods and services included in the basket; these individual price indices are normally calculated on the basis of monthly registration of prices and tariffs of commodities-representatives. The structure of consumption expenditure in the base period is used for weighting individual price indices; this structure is established on the basis of the households budget surveys. The CPI can be calculated separately with respect to foodstuffs, non-food products and services.

Ratio of average monthly wage and prices for selected consumer goods in trade enterprises of the capitals of the Commonwealth countries is an indicator characterizing purchasing power of wage. Calculation was made using data on average wage for December by the capitals of the corresponding countries and prices for selected consumer goods, registered in trade enterprises at the end of December.

Ratio of prices for selected foodstuffs registered in trade enterprises of the capitals of the Commonwealth countries different approaches in conduct of price reform in the Commonwealth countries resulted in great differentiation in price dynamics and that is why ratio of prices for selected products was formed in different ways. Given is comparison of prices for some kinds of foodstuffs with price, for example, of such product of first priority as white bread of high grade.

Consumption of main foodstuffs per capita shows actual consumption of the main foodstuffs (by kinds) per capita. Consumption of main foodstuffs by population includes the following ones:

-              meat and offal of the I-rst and II-nd category, fat and meat products (sausage, smoked meat, canned meat and meat with vegetables, chopped meat, etc.) in recalculation for meat;

-              milk and dairy products (butter, cheese, brynza, cream, sour cream, curds, ice-cream, canned milk, dry milk etc.) in recalculation for milk;

-              poultry eggs, egg-powder, mélange in recalculation for eggs;

-              flour, groats, grain, bread and macaroni products in recalculation for flour;

-              potatoes, vegetables and melons (fresh, dry, salted, canned, pickled, etc. in recalculation for fresh).

The data on sale of alcoholic beverages through all channels of sales for Azerbaijan, Belarus, Kyrgyzstan and Russia are given per capita; for other countries basing on the data on sale by trading organizations.

Volumes of exports (imports) of the group Consumer goods includes the following sections of Trade Nomenclature of External Economic Activity of the Commonwealth of Independent States (TNEEA of CIS):

-              live animals; animal products;

-              vegetable products;

-              animal or vegetable fats and oils;

-              prepared foodstuffs; beverages, spirits and tobacco;

-              textiles and textile articles;

-              footwear, headgear, umbrellas;

-              articles of stone, plaster, cement, asbestos, mica; glass and glasswares;

-              instruments and apparatus; clocks and watches; musical instruments;

-              miscellaneous manufactured articles.

 

Visible consumption of consumer goods in dollar terms is calculated with the help of formula: production plus imports minus exports. Visible consumption covers domestic consumption together with growth of stocks and reserves of production as well as losses of examined resources. Production of the countries is recalculated into US dollars according to exchange rates of the corresponding national (central) banks of the CIS countries yearly average.

Number of burses includes commodity burses, commodity-raw materials burses, stock exchanges, currency burses, burses for transactions with real estate and other types of burses (except labour burses).

A burse is an enterprise which has a status of a legal entity participating in formation of the wholesale market of goods, raw materials, securities, foreign currency and other items by organizing and regulating trade in the form of open public trade transactions carried out according to the established rules.

Number of transactions concluded at burses - the number of officially executed and registered acts (contracts) of purchase and sale between supplier and customer in accordance with the established rules.

Turnover of a burse refers to the value of transactions concluded during certain period of time; it is computed in prices existing at the moment of a transaction conclusion as a sum of values (excluding VAT) of sold commodities (products, securities, currency, real estate objects and other values).

 

Conventional signs:

 

 

0,0

- Very low value

-

- Not applicable

- Missing data

*

- Estimate