Real wage growth accelerates to 9.5% yoy in July

Real wages in Ukraine grew 9.5% yoy in July,
accelerating from 8.1% yoy growth in June, the State Statistics Service reported
on Aug. 28. The average monthly nominal wage amounted to UAH 10,971 a month
(USD 426), increasing from UAH 10,783 in June, or 2.4% m/m in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 16,249), the Ukrainian-controlled Donetsk region (UAH
12,010), and the Kyiv region (UAH 11,567).

The largest nominal average wage growth was in
agriculture (25.0% yoy), industry (24.7% yoy), and administration and support services
(23.8% yoy). Within the industrial sector, the highest nominal wages were in
pharmaceuticals (UAH 20,013), mining (UAH 16,293), and coke and oil production
(UAH 15,937).

Evgeniya Akhtyrko: Apparently,
cooling inflation and accelerated economic growth contributed to rising
wages.  In USD terms, the average monthly wage now exceeds the average
monthly wage in 2013 (USD 411).

We expect real wages to climb 9-10% yoy in 2019 (vs.
12.5% yoy in 2018).