Ukraine retail trade increases 6% in 7M18

Ukraine’s 7M18 retail sales increased 6.0% yoy in real
terms, slightly slowing from 6.2% growth in 1H18, Ukraine’s State Statistics
Service reported on Aug. 20. In July, real retail sales picked up 3.9% m/m and
6.6% yoy (vs. a 0.8% m/m decrease and 6.3% yoy rise in June).

Regionally, the highest 7M18 retail growth occurred in
Ukraine-controlled Luhansk (23.4% yoy), Zakarpattia (10.9%) and Poltava (10.5%)
regions, while growth was slowest in Chernivtsi (0.6%), Kharkiv (2.1%) and
Kirovohrad (2.9%).

Evgeniya Akhtyrko: We anticipate retail trade to pick up during 2H18 amid continuing
economic growth and cooling inflation. We expect real retail sales to grow 7-8%
yoy in 2018.