• 17/01/2025 00:59

Which Ukrainians Will Become Poor in 2025: Economist's Warning

Which Ukrainians Will Be Poor in 2025: Economist's Warning

The expert explained, “if income has grown less than prices have grown, for me it’s a tragedy.”

In Ukraine, the growth of the average salary will not cover the projected inflation in 2025. Real incomes of Ukrainians will fall and this will primarily affect the low-income strata of the population.

This was reported by member of the Economic Discussion Club Oleg Pendzin, Telegraf reports.

The expert explained that it is a mistake to take a one-sided approach to assessing the consumer basket of a Ukrainian, talking only about rising prices. After all, in addition to inflation, there is also rising income. Pendzin explained why it is necessary to pay attention to purchasing power.

“If inflation is 10%, and your income has grown by 20% in a year, then you have become 10% better off. Your purchasing power has grown by 10%. And every time we receive our salary, we measure what we can buy with this money,” the economist said.

He noted that in 2025, the state budget includes a 9.5% increase in consumer prices. At the same time, social standards have been frozen.

“This year, our social standards are frozen, meaning that with 9.5% inflation, our incomes will not grow by a single kopeck. Moreover, the average annual growth of the average salary (in December 2024, it was UAH 22,500, and in 2025 it should be UAH 24,200) is less than 10%,” Pendzin said.

According to his estimates, even if the forecast figures are reached, the growth of the average salary in Ukraine will not cover inflation.

“Real incomes will fall, first of all, this will affect the low-income strata of the population. Let's be sober, that with all due respect to the Cabinet of Ministers, the Office of the President, the initiatives of the “Zelensky thousand”, the New Year's additional payments of UAH 1,000 to teachers' salaries (by the way, doctors' salaries have not been increased), this does not cover the rise in prices,” the expert emphasized.

He added that if the cost of bread has grown more than the income of Ukrainians, then they have physically begun to consume less bread.

“I don't care how much prices have risen – I am much more interested in how much my income has risen. If income has grown less than prices have risen – for me this is a tragedy,” Pendzin explained.

By the way, actual consumer inflation in December 2024 exceeded the forecast of the National Bank of Ukraine, and prices will continue to rise in the coming months.

Read also:

  • State Statistics summed up inflation for 2024: what has increased in price the most
  • Currency will become more expensive: what will be the dollar exchange rate in 2025
  • The government has decided on the size of pension indexation

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