Real disposable income of Ukrainians rises 8% yoy in 1Q19

Real disposable income of Ukraine’s citizens rose 7.7%
yoy in 1Q19, accelerating from 6.8% yoy growth in 4Q19, the State Statistics
Service preliminary reported on July 1. Average disposable monthly income per
individual increased to UAH 4,799 (USD 176). Nominal gross income of
individuals rose 15.5% yoy, driven mostly by accelerating wages (17.8% yoy) and
social income (11.4% yoy).

The nominal income of private entrepreneurs and self-employed
individuals improved 18.2% yoy, while property income rose 6.8% yoy. Spending
on goods and services gained 15.5% yoy.

Evgeniya Akhtyrko: Higher wages
and social payments continued to be the major drivers of individuals’ incomes.
At the same time, the income of private entrepreneurs and self-employed
individuals has also demonstrated a high growth pace.

Cooling inflation in 1Q19 contributed to accelerated
disposable income growth in real terms.

We project real disposable income to increase
9.0-9.5% yoy in 2019 (vs. 9.9% yoy in 2018).