Economic opportunities for Ukrainians decreased significantly in the second half of 2019

Экономические возможности украинцев существенно сократились во второй половине 2019

After improvement before the election, the situation for the citizens has deteriorated again

The value of the Index of economic opportunities for the population of Ukraine in December 2019 was 96, which is the lowest level of the year except the winter months. This is evidenced by regular surveys by the Razumkov Center.

According to experts, this result was expected, given the negative trend of deterioration since August 2019 (the period that correlates with the activity of the new ruling team).

Among the components of the deterioration in the last period observed:

  • the inhibition of the increase in average salaries from August to November, the average nominal salary rose in September to 10 687 UAH in Nov – 10 679 UAH. The real average wage, despite the acceleration of inflation in the autumn months, even declined by about 1%;
  • the growth of arrears of wages at the end of July, the debt was 2.7 billion UAH, and in October-November reached 3.2-3.4 billion UAH;
  • unsatisfactory indicators associated with the loans (low lending volumes while preserving high interest rates) – from November 2018 to November 2019, the volume of loans to households grew by only 4.4%, and interest rates on new loans to households (over the same period) increased from 31% to 33%;
  • the deterioration of the calculations in the housing sector (due to the high tariffs and the specified conservation wages) – monthly coverage of the accrued amounts for utility services in November fell below 50%;
  • the decline in employment in autumn and winter compared to spring and summer (although this is a seasonal phenomenon, including as a result of the return part of the “guest workers” from agricultural work abroad, but its influence on the assessment of welfare is significant).

Recall imposed by the Razumkov Center, the Index characterizes (integrates) not only traditionally considered the purchasing power of the population, but also economic sustainability – the ability of the average household for life with the loss of sources of current income for a certain period of time. The center believes that economic stability is one of the most important conditions the feeling of security, confidence in the future, and therefore, opportunities to build long-term life strategies, overall condition of positive social well-being.

Экономические возможности украинцев существенно сократились во второй половине 2019

Экономические возможности украинцев существенно сократились во второй половине 2019