Ukraine retail sales speed up to 4% yoy growth in 7M20

Ukrainian retail sales accelerated to 4.2% yoy growth
in real terms in 7M20 from 3.0% yoy growth in 1H20, Ukraine’s State Statistics
Service reported on Aug. 20. In July, retail sales increased 8.5% yoy (vs. a
1.4% yoy growth in June), and advanced 12.1% m/m in real terms.

Regionally, the highest retail growth in 7M20 occurred
in Kyiv (12.1% yoy), Zaporizhzhia (11.4% yoy) and Chernihiv (9.3% yoy) regions.
The major outsiders were Zakarpattia (-9.9% yoy), Chernivtsi (-7.2% yoy), Rivne
(-0.8% yoy) and Lviv (-0.6% yoy) regions.

Evgeniya Akhtyrko: Ukraine’s
retail sector continues growing quickly, and this confirms the observation that
the changes in the disposable income of Ukrainians as a result of the
coronavirus crisis have not been significant enough to reduce their consumption
behavior. In this regard, the recent government decision to hike the minimal wage by 20-30% in 2021
does not look like a good idea as it aims to stimulate a factor which is not
depressed at all.

The positive trends in trade might serve as the
single offsetting factor to the economic recession since the situation in other
sectors does not look promising.