National Bank said the main reason for the decline in real income
In Ukraine in the spring of 2020 stopped the growth of real incomes of the population. So, in all the quarantine April real wages in the country decreased by 0.5%. The decline was the first since March, 2016, however, prices in the country did not grow. That is stated in the financial stability report, which was prepared by the national Bank of Ukraine (NBU).
The reason for the decrease in real wages, according to the NBU, was the low business activity and the demand for labour.
The amount of social assistance to the population, on the contrary, increased. At this rate, in particular, was influenced by “quarantine” surcharge, and the annual indexation of pensions. Thus, according to the national Bank, such payments have not had a significant impact on the incomes of Ukrainians.
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A negative factor was the decline of wages of migrant workers. In March 2020, the rate in dollar terms decreased by 9% (compared to March 2019), although it grew for four months before.
“In 2020, the three-year trend of income growth will stop. Fears of a second wave of coronavirus negative impact on the recovery of jobs,” – noted in the NBU.
According to analysts of the national Bank, the growth of wages possible after the lifting of the quarantine, but this probability is small.
We will remind, earlier the President of Ukraine Vladimir Zelensky instructed the Cabinet of Ministers to raise the minimum wage for all Ukrainians.