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4.4.3 Retail sector dynamics
Ukrainian retail sales accelerated to 4.2% y/y growth in real terms in 7M20 from 3.0% y/y growth in 1H20, Ukraine’s State Statistics Service reported on August 20.
In July, retail sales increased 8.5% y/y (vs. a 1.4% y/y growth in June), and advanced 12.1% m/m in real terms, which puts retail back on its pre-crisis fast growth track, say analysts. The fastest growth was seen in Kyiv.
Regionally, the highest retail growth in 7M20 occurred in Kyiv (12.1% y/y), Zaporizhzhia (11.4% y/y) and Chernihiv (9.3% y/y) regions. The major outsiders were Zakarpattia (-9.9% y/y), Chernivtsi (-7.2% y/y), Rivne (-0.8% y/y) and Lviv (-0.6% y/y) regions.
“Ukraine’s retail sector continues growing quickly, and this confirms the observation that the changes in the disposable income of Ukrainians as a result of the coronavirus crisis have not been significant enough to reduce their consumption behaviour. In this regard, the recent government decision to hike the minimal wage by 20-30% in 2021 does not look like a good idea as it aims to stimulate a factor, which is not depressed at all,” Evgeniya Akhtyrko. "The positive trends in trade might serve as the single offsetting factor to the economic recession since the situation in other sectors does not look promising.”
27 UKRAINE Country Report September 2020 www.intellinews.com
