Real wage growth slows to 9.7% yoy in December

Real wages in Ukraine grew 9.7% yoy in December,
slowing from a 11.4% yoy surge in November, the State Statistics Service
reported on Jan. 28. The average monthly nominal wage amounted to UAH 10,573 a
month (USD 380), surging from UAH 9,161 in November, or 14.5% m/m in real
terms.

The leading regions for average monthly wages remained
the city of Kyiv (UAH 16,546), the Ukrainian-controlled Donetsk region (UAH
11,298) and the Kyiv region (UAH 11,146).

The largest nominal average wage growth was in
construction (29% yoy), administration services (28% yoy) and industry (24%
yoy). Within the industrial sector, the highest nominal wages were in
pharmaceuticals (UAH 18,075), electricity and natural gas (UAH 15,875), and
computer and electronics production (UAH 14,246).

Evgeniya Akhtyrko: The
month-to-month surge in wages is typical in December due to traditional bonus
payments at the year end. Real wages grew 12.5% yoy in 2018 (vs 19.1% yoy in
2017), according to our estimates. We expect real wages to climb 9-10% yoy in
2019.