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quarantine restrictions related to the coronavirus pandemic were lifted. This reinforces our expectation that private consumption in Ukraine will not be severely affected by the crisis, as wage growth is the major driving force of individual income. The accelerated growth of wages also indicates that the crisis hasn’t had a deeply negative effect on the labor market.
A law capping government salaries at $1,750 a month will continue through the summer​. Adopted three months ago, in solidarity with the corona lockdown, the cap increasingly was seen as an invitation to corruption. However, on Monday, the government withdrew a bill to abolish the cap. Last week, in his interview with Liga.net, IMF representative Ljungman said: “Limiting the size of the maximum salary can lead to the loss of the greatest talents and the necessary experience. This would not be in the interests of Ukraine.”
30​ UKRAINE Country Report​ August 2020 ​ ​www.intellinews.com