Purchasing power of Ukrainians fell by 30%

According to the happiness index, Ukraine ranks 110th, while the Czech Republic – 18th place, Poland – 44th, Latvia – 51st.Over 30 years, the country's population has decreased by 27% / Illustration REUTERSOver 30 years, the country’s population has decreased by 27% / Illustration REUTERS

Purchasing power in Ukraine has fallen by 30% in the 30 years since independence, despite rising average wages , and remains low compared to other post-Soviet countries.

This was announced by the director of economic programs of the Ukrainian Institute of the Future Anatoliy Amelin during the presentation of the study “30 years of Ukraine’s independence: economic results”.

“Purchasing power is a very important indicator, which, among other things, determines the size of the consumer market. The lack of effective economic reforms has led to the fact that purchasing power in Ukraine remains low compared to the former Soviet Union. Between 1990 and 2021 the average monthly salary in Ukraine it increased from $ 118 to $ 500. But purchasing power fell by 30%, “the expert said.

According to Amelin, the criterion of purchasing power is not the amount that a person receives, but how much for the amount of salary a person can buy.

“We took meat as such a criterion. For comparison, with today’s average salary in Russia you can buy 106 kg of meat, in Belarus – 90 kg, in Kazakhstan – 96 kg, Estonia – 155 kg, Lithuania – 221 kg, in Ukraine – 86 kg “, – the expert reported.

He also said that in 30 years the country’s population has decreased by 27% – from 52 to 37 million. The average life expectancy in Ukraine is 71 years.

“We seem to be growing, but lagging behind other countries of the former Soviet camp. And here the criteria are quality of life, medicine, income level, because income level directly affects the quality of food, lifestyle and the ability to afford quality medicine,” said Amelin. .

According to the study, according to the happiness index, Ukraine ranks 110th, while the Czech Republic – 18th place, Poland – 44, Latvia – 51. The reason for this situation, according to the expert, is low incomes, low life expectancy, poor health ‘I.

“Ukraine lags behind neighboring countries in terms of the quality of education. According to the Human Capital Index, Ukraine lost 10 positions (from 2010 to 2020), ranking 53rd in the ranking. According to the education index, Ukraine is inferior to almost all neighboring countries,” Amelin added.

Living standards of Ukrainians:

  • As of October 2020, the results of monitoring showed that more than a quarter of the total population of Ukraine  was below the poverty line . Every third Ukrainian who had a job did not have enough salary to meet the necessary necessities of life.
  • From January 1, 2021, the minimum wage in Ukraine was increased to UAH 6,000.
  • According to a survey by the State Statistics Service, as of August this year, about half of Ukraine’s adult population  expects their financial situation to deteriorate  and fears that they may find themselves below the poverty line. Also, 50.4% of respondents reported a significant deterioration in financial situation.
  • According to the State Statistics Service, the average nominal salary of a full-time employee in Ukraine in June 2021 increased compared to June 2020 by 23.6% – up to 14 thousand 313 UAH.
  • As of August 9, 2021, only 1% of Ukrainians considered themselves to  be middle-class , while two-thirds of the population (67%) considered themselves poor. 
  • According to a survey conducted by the Kyiv International Institute of Sociology (KIIS), more than 14% of Ukraine’s population lacks money even for food. Only 32.8% of citizens can afford to buy food and clothing and put it off a bit, but they cannot buy expensive appliances (refrigerator or TV).

(c)UNIAN 2021

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