Page 21 - UKRRptAug19

According to the report, real disposable income, determined by the price factor, grew by 7.7% in the first quarter of 2019 compared to the same period of 2018
Disposable income per capita for the first three months of the current year amounted to UAH 14,398, which is UAH 3,028 more than in the same period of 2018.
Expenditures of the population in the first quarter of 2019 compared to the same period of the previous year rose by 20.8%.
Real wages in Ukraine grew 7.0% y/y in May, slowing from an 11.2% y/y April advance , the State Statistics Service reported on June 27. The average monthly nominal wage amounted to UAH10,239 a month ($388), decreasing from UAH10,269 in April, or 1.0% m/m in real terms.
The leading regions for average monthly wages were the city of Kyiv (UAH15,157), the Ukrainian-controlled Donetsk region (UAH11,391) and the Kyiv region (UAH10,776).
The largest nominal average wage growth was in information and telecommunications (22.8% y/y), construction (22.5% y/y) and industry (22.4% y/y). Within the industrial sector, the highest nominal wages were in pharmaceuticals (UAH18,888), mining (UAH15,408), and coke and oil production (UAH15,292).
Apparently, stronger consumer inflation contributed to slower growth of real wages in May. Weak industrial growth was another factor. The month-to-month decrease in nominal wages is likely to have resulted from fewer working days in May this year (18 days in May vs. 21 days in April). Concorde capital expects real wages to climb 9-10% y/y in 2019 (vs. 12.5% y/y in 2018).
Real disposable income of Ukraine's citizens rose 7.7% y/y in 1Q19,
accelerating from 6.8% y/y growth in 4Q19, the State Statistics Service preliminary reported on July 1. Average disposable monthly income per individual increased to UAH4,799 ($176). Nominal gross income of individuals rose 15.5% y/y, driven mostly by accelerating wages (17.8% y/y) and social income (11.4% y/y). The nominal income of private entrepreneurs and self-employed individuals improved 18.2% y/y, while property income rose 6.8% y/y. Spending on goods and services gained 15.5% y/y. “Higher wages and social payments continued to be the major drivers of individuals' incomes. At the same time, the income of private entrepreneurs and self-employed individuals has also demonstrated a high growth pace,” Evgeniya Akhtyrko of Concorde Capital said in a note. “Cooling inflation in 1Q19 contributed to accelerated disposable income growth in real terms. We project real disposable income to increase 9.0-9.5% y/y in 2019 (vs. 9.9% y/y in 2018).”
The size of subsistence minimum in Ukraine from July 1, 2019 increased from UAH1,853 to UAH1,936 ($74). The relevant norms are stipulated in the law on the national budget of Ukraine for 2019. The subsequent increase in the subsistence minimum to Hr 2,027 is scheduled for December 1 of this year.
21 UKRAINE Country Report August 2019 www.intellinews.com