Retail trade in Ukraine increases 6.3% in January

January’s retail trade increased 6.3% yoy in real terms,
accelerating from 4.9% yoy in December, Ukraine’s State Statistics Service
reported on Feb. 20. Meanwhile, retail sales plunged 23% m/m in real terms.

Regionally, January’s highest retail growth occurred
in Kyiv (11.3% yoy), Ivano-Frankivsk (10.8% yoy) and the Ukrainian-controlled
Donetsk regions (9.8% yoy). It was slowest in the Chernihiv (1.3% yoy),
Kirovohrad (1.6% yoy) and Volyn (2.0% yoy) regions.

Evgeniya Akhtyrko: The
accelerated growth of retail trade indicates that consumer demand remains high
and will help to maintain a moderate economic growth pace amid declining industrial production.

We expect real retail trade to increase 6-7% yoy in
2019, driven by real disposable income growth (mostly wages).