Why do Ukrainians earn more money but not get rich

In 15 years of official income per member of the Ukrainian family has increased 12-fold, estimated by the state statistics service. If in 2002 each accounted on average for 245 UAH per month, in 2016 — almost 3000 UAH.

But experts say the cost to families over the years also increased significantly, so to say that people have more is not necessary. On the contrary.

INCOME less. As you can see from the infographic, incomes grew most rapidly in 2005-2008 and 2015-2016, when he revived the country’s economy. The recent increase in income also shows that the Ukraine two years trying to get out of the crisis caused by the change of government.

Economist Ivan Nikitchenko agree that the nominal incomes of Ukrainian families began more than 15 years ago, but the real growth is much more modest than the official 12 times.

“The best indicator of income is in US dollars, as the prices of almost all goods from the us correlated with the exchange rate of the American currency, we were told Nikitchenko. In 2002, the official income of each was $46 at the rate of 5.3 UAH/$, and in 2016 — $116 at the rate of 25.6 UAH/$. That is, the revenue growth in dollars — 2.4 times, instead of 12. The highest rate was in 2013 — $278 at the rate of 8 UAH/$”. This correlates with the official inflation for 15 years, amounting to 630%.

COSTS more. Head of the Secretariat of the Council of entrepreneurs under the Cabinet of Ministers Andrei Zablovsky notes that inflation-adjusted purchasing power of the population over 15 years have increased very modestly.

“Even the latest increase of mentorplace to 3200 UAH will not help bring real incomes to pre-crisis levels. So people felt a boost in their wallets, the need to achieve economic growth of 5-7% over at least 5 years instead of the current 2-3% per year”.

The President Ukranalittsentra Alexander Ohrimenko sure the main reason that we don’t feel richer — the rapid growth of expenditure.

“For example, a liter of gasoline cost in 2002 2 UAH, now — 25 UAH (12 times), for communal services, the average family paid in hoopston 250-300 UAH per month, now 2.5—3 thousand UAH (increase 10 times), analyzes Okhrimenko. — Much more expensive products, primarily meat, cheese. Skyrocketed the price of drugs, for example, cheap pain pills cost 30 kopecks. per package, now 6 UAH (growth of 20 times). State statistics takes into account the “average prices in the hospital,” for example, clothing and shoes (who buys a lot less than products, that is, the share of manufactured goods in spending is much lower than for food) for 15 years has risen only twice”.

When we get rich? Analysts say that in 2017, the revenue growth will overtake inflation, but the level of 2013, when the income in dollars was the highest, approaching will for a long time. According to Okhrimenko, at $240-250 average income per person per month Ukraine will be in 2020, not due to the depreciation of the dollar, but at the expense of growth of salaries and pensions.