The reason for such indicators is the growth of military payments and the stable income of public sector employees, the National Bank explained.
A sharp increase in payments to military personnel and stable income of public sector employees, the total nominal income of the population, affects the general income of Ukrainians. Specifically, they exceeded last year’s income level. This is stated in the Financial Stability Report published by the National Bank of Ukraine (NBU).
The income of private sector workers has fallen sharply since the start of the war due to forced layoffs, emigration, downtime and wage cuts, the document notes.
However, this loss of income was more than offset by the rapid growth in the income of military personnel.
“In all probability, the significant payment to the military made it possible to maintain the total real income of the population at the level of the previous year, despite the acceleration of inflation,” said the analysis.
The most noticeable increase in the second half of the year was the increase in the amount of foreign currency savings – both cash and non-cash. In July, the NBU eased foreign exchange restrictions and allowed the population to buy foreign currency by placing it in a term deposit. The volume of time deposits in foreign currency has started to grow for the first time since the beginning of the corona crisis.
The balances of household funds in hryvnia bank accounts also grew: the volume of current accounts increased, due to their liquidity and still not attractive enough compensation for term deposits, reported of NBU.
“The growth of the population’s funds in banks is almost entirely due to the increase in the balances in the accounts of the military and recipients of social payments,” the analysis concluded.
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According to IMF forecasts, Ukraine may need from $39.5 billion to $57 billion in external financing by 2023.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.