Ukraine retail trade slows to 9.6% growth in August

Ukrainian retail sales increased 9.6% yoy (and 1.1 m/m) in August slowing from 10.1% yoy growth in prior month, Ukraine’s State
Statistics Service reported on Sept. 20. In 8M21, retail increased 12.9% yoy
(vs. 5.7% yoy in 8M20).

The highest growth of retail sales in 8M21 occurred in
Chernivtsi (30.2% yoy), Ternopil (28.4% yoy) and Lviv (20.2% yoy) regions. The
slowest growth rates were in Kharkiv (1.5% yoy), Ukraine-controlled Luhansk
(7.4% yoy) and Donetsk (both 9.4% yoy) regions.

Evgeniya Akhtyrko: The growth
rate of retail sales continues to decline as the effect of the low comparative
base in the previous year wears off. Nevertheless, the retail growth remains
quite high, spurred by revival of business activity.

We expect consumer demand to stay strong in 2021,
allowing retail sales to accelerate to 10% yoy (vs. 7.6% yoy growth in 2020).