Real wages rise 12.5% yoy in January

Real wages in Ukraine grew 12.5% yoy in January, speeding
up from 11.3% growth in December, the State Statistics Service reported on Feb.
28. The average monthly nominal wage dropped to UAH 10,727 a month (USD 445)
from UAH 12,264 in December, or a 12.7% m/m slide in real terms.

The leading regions for average monthly wages were the
city of Kyiv (UAH 15,787), the Ukrainian-controlled Donetsk (UAH 11,656) and
Dnipropetrovsk regions (UAH 11,267).

The largest nominal average wage growth was in “other”
services (27.4% yoy), hospitality and catering (22.3% yoy), and public
administration and defence (20.7% yoy). Within the industrial sector, the
highest average nominal wages were in pharmaceuticals (UAH 20,617), mining (UAH
16,246), coke and oil production (UAH 16,086).

Evgeniya Akhtyrko: The drop in
average monthly nominal wages after the December surge
was caused by traditional bonus payments at the year end. Meanwhile,
year-on-year growth of real wages remains high, even despite slower economic growth.

We expect real wages to increase 8-9% yoy in 2020
(vs. 9.8% yoy in 2019).