The National Bank predicts that real wages in Ukraine will exceed their pre-war level during 2025 and will continue to grow. This is stated in the NBU Inflation Report for July 2024.
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«Tightening competition for available labor, including with foreign employers, and maintaining a soft fiscal policy will remain stable factors in the growth of wages in the private sector and, accordingly, consumer demand,” the NBU noted.
The regulator recalled that in the first quarter of 2024, on average, real wages increased by 17.7% y/y.
High rates of wage growth continued in the second quarter, despite the deterioration in business sentiment and expectations regarding both the change in the number of employees and labor costs.
“Improvement in employment, higher wages and growth in other social payments led to a further increase in real incomes of the population, and, accordingly, sustainable growth in consumption,” the report says.