Recently, the head of the Ukrainian Cabinet of Ministers Volodymyr Groysman stated that the growth dynamics of the average wage in Ukraine is ahead of inflation. At the same time, he cited a comparative analysis of average wages for 2017, 2016, and 2015. According to the data provided by the Prime Minister, in 2017, the income of Ukrainians grew by about 37%. At the same time, price growth for the same reporting period amounted to 15%. Thus, the head of government noted that the rate of increase in average wages was outstripping the rate of inflation.
The average salary in Ukraine in recent years
Some experts decided to check whether this statement by Vladimir Groysman corresponds to the real situation. A simple and effective method was used for this. Namely, a comparison is made of how much goods and services can be bought for the average salary in 2017 and how many such positions could be acquired starting in 2014. So how much is the average salary in Ukraine today? What has she been like in recent years under the new government?
Three years ago, the average salary in Ukraine was equal to 3480 UAH, which amounted to approximately 221 US dollars. With this money it was possible to purchase 204 liters of gasoline, 115 kg of poultry meat or 560 units of Ukrainian bread.
In 2015, the average salary in Ukraine was already 4,195 hryvnias. But due to the devaluation of the national currency in terms of US dollars, this amount decreased and amounted to 176 US dollars. The purchasing power of the inhabitants of Ukraine for most items of the consumer basket decreased.
If we talk about those goods that were cited as an example for 2014, then in 2015 you could buy 214 liters of gasoline, 109 kg of poultry meat or 424 loaves of bread for an average salary. A year later, these indicators increased slightly and amounted to: 220 liters of gasoline, 123 kg of chicken meat and 489 units of Ukrainian bread. The average salary in Ukraine amounted to 5183 hryvnias or at the then exchange rate of 191 US dollars.
The most “successful” year?
If we evaluate the statements of the head of the Ukrainian government from the point of view of the analysis of those goods and services that are listed above, then 2017 is indeed the most successful in the ratio of “average wage-cost of goods and services”. So, the average salary in Ukraine at the moment is 6109 hryvnia or 230 US dollars. With this money you can buy 243 liters of automotive fuel, 140 kg of poultry meat or 523 loaves of Ukrainian bread. It turns out that the only position that worsened its position from this list compared to 2014 is just bread.
Nevertheless, many socially important and communal services became less accessible for Ukrainian citizens in 2017. For example, travel by subway or hot water. So, in 2014, on average wages, it was possible to carry out 1740 trips in the Kiev metro, in 2015 - 1048, in 2016 - 1295. But in 2017, an ordinary Ukrainian citizen will be able to use the metro services 1527 times for the average wage.
The same situation is with the supply of hot water to apartments and houses of Ukrainians. Due to the constant increase in utility tariffs and gas prices for the population every year, starting in 2014, citizens can afford less and less cubic meters of hot water.
Finally
As you can see, it can be testified that the Prime Minister of Ukraine, giving a positive assessment of the dynamics of the increase in the average wage in the country, did not take into account the rise in price of some goods and services that are very important for Ukrainians. The increase in prices for these key positions in the monthly expenses of Ukrainian citizens almost eliminates the successes of the government that Vladimir Groysman spoke about. “What is the average salary in Ukraine” is a question that needs to be approached comprehensively, assessing many objective factors.