Real wages increase 13% yoy in June

Real wages in Ukraine rose 12.8% yoy in June, slowing
from 16.8% yoy growth in May, the State Statistics Service reported on July 28.
The average monthly nominal wage amounted to UAH 14,313 (USD 525), growing from
UAH 13,499 in May, or 5.8% m/m in real terms.

The leaders for average monthly wages were the City of
Kyiv (UAH 20,455), and Ukrainian-controlled Donetsk (UAH 14,988) and Kyiv (UAH
14,679) regions. The largest average nominal wage increase was in hospitality
and catering services (71.3% yoy), arts, sports and recreation (39.5% yoy), as
well as information technologies and telecommunications (38.4% yoy).

Within the industrial sector, the highest growth of
nominal wages was in the textile industry (29.7% yoy), machinery (25.2% yoy) as
well as wood processing and printing (23.5% yoy).

Evgeniya Akhtyrko: Not
surprisingly, the growth rate for real wages is declining as the effect of the
low comparative base of the previous year wears off. Nevertheless, the growth
of real wages remains high, driven by the economic revival and high demand for
labor force.

We expect real wages will rise 8-9% yoy in 2021.