Ukraine real wages slow to 10.5% yoy growth in February

Real wages in Ukraine grew 10.5% yoy in February after
12.3% yoy growth in the prior month, the State Statistics Service reported on
March 28. The average monthly nominal wage increased to UAH 7,828 (USD 288)
from UAH 7,711 in January, which translates to growth of 0.6% m/m in real
terms.

The leading regions for average monthly wages remained
the city of Kyiv (UAH 12,124), the Ukrainian-controlled Donetsk region (UAH
8,402) and the Kyiv region (UAH 8,073).

The largest average wage growth was in public services
(49% yoy), transportation (35% yoy) and real estate services (31%). Within the
industrial sector, the highest nominal wages are in pharmaceuticals (UAH
15,034), mining (UAH 10,439), and metallurgy (UAH 9,361).

Evgeniya Akhtyrko: High consumer inflation, coupled
with the high comparative base of the previous year (18.0% yoy real wage growth
in February 2017), were restricting the growth of wages in real terms.

We expect real wage growth will slow even further
throughout the year, ending in the 9-10% range. Slowing inflation in 2H18,
coupled with economic growth, will keep real wages in this range.