The IMF worsened the forecast of inflation for Ukraine

According to the updated forecast of the International monetary Fund (IMF), Ukraine’s economy this year will grow by 2%, while inflation will exceed the previous forecast and will make 12.8%. This is stated in the updated forecast of the Fund for the European region, according to «BBC Ukraine».

According to experts the IMF, inflation is associated with an increase in the minimum wage, and hence the average wage in Ukraine.

«The growth of nominal wages is on average 35% in 2017, reflecting a doubling of the minimum wage and a large increase in the salaries of civil servants. This stimulates a large increase in labor cost and bears the risk of accelerating inflation,» – said in a forecast.

The National Bank of Ukraine on 6 July predicted that inflation will remain at 9.1% in 2017 and 6% in 2018. On 10 July, the NBU admitted that the real level of inflation by the end of 2017 will be higher than expected.

In October the National Bank of Ukraine stated that due to the increase in the minimum wage, inflation rose by 2-2. 5 percentage points.

The world Bank forecasts inflation in Ukraine at the level of 10% in 2017.

In may, the IMF also predicted that inflation in Ukraine at least 10% by the end of the year.

From 1 January 2017 the minimum wage in Ukraine has increased up to 3200 UAH. According to Vice Prime Minister – Minister of economic development of Stepan Kubiv as of 1 January 2018 expected size of the minimal wage will amount to UAH 3723, in 2019 this amount will reach UAH 4173.

October 3, the Verkhovna Rada approved in the second reading and the whole government bill No. 6614 «On amendments to some legislative acts of Ukraine concerning increase of pensions.» The Parliament also voted for the bill No. 6617 on amendments to the Budget code of Ukraine in connection with pensions. 11 October pension reform entered into force.

October 1, pensions are counted using a single measure of average wage in 2017 for the calculation of pensions is 3764,4 UAH, and increased the cost of one year of pensionable service, reduced from 1.35% to 1%. From 1 October 2017, the minimum pension, according to new calculations, is 1452 UAH.

The IMF worsened the forecast of inflation for Ukraine 13.11.2017

Ноябрь 13th, 2017 by
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