Ukraine real wages slow to 9.5% yoy growth in March

Real wages in Ukraine grew 9.5% yoy in March (10.5%
yoy in February), the State Statistics Service reported on Apr. 27. The average
monthly nominal wage increased to UAH 8,382 a month (USD 318) from UAH 7,828 in
February, which is 5.9% m/m growth in real terms.

The leading regions for average monthly wages remained
the city of Kyiv (UAH 13,388), the Ukrainian-controlled Donetsk region (UAH
8,927) and the Kyiv region (UAH 8,399).

The largest nominal average wage growth was in public
services (42% yoy), financial and insurance services (30% yoy) and
administrative and supporting services (29%). Within the industrial sector, the
highest nominal wages remained in pharmaceuticals (UAH 18,097), mining (UAH
11,735), and metallurgy (UAH 11,078).

Evgeniya Akhtyrko: The
slowdown in real wage growth is in line with our expectations given high consumer inflation and the high
comparative base of the previous year (18.7% yoy real wage growth in March
2017).

We expect slowing inflation and economic growth in
2H18 will keep real wage growth in the range of 9-10% yoy during the rest of
the year.