Ukrainians will become poorer, but not for long? Economists predict significant wage cuts

The war in the country and sharp jumps in the currency market seriously affect the economy of Ukraine. Now most citizens are experiencing a negative effect, but soon the economy will begin to grow rapidly.

This opinion was voiced by the well-known Ukrainian economist Mikhail Kukhar in the author’s program of Orest Sohar on YouTube.

According to him, Ukrainians are getting poorer, as prices in the country are rising, and salaries do not change. This is felt both by Ukrainians who have savings in dollars and those who keep their income in hryvnias.

This situation is associated with several factors:

• projected price increase in Ukraine by 20%;
• an unprecedented number of migrants who took $3 billion abroad.

Lowest border

Mikhail Kukhar noted that the recession in the Ukrainian economy should end in the second quarter of 2022. Already from the third quarter, there will be relief, in particular, this can be seen in wages, which, after almost halving, will begin to rise sharply.

The economist added that before the start of a full-scale war, the average salary of a Ukrainian was $615 (UAH 18,000), in Kyiv it was $925 (UAH 27,000). According to forecasts, the maximum level of the average salary may fall to $400 (UAH 11.8 thousand), and then there will only be an increase.

The expert is convinced that by the end of 2022 the war with the Russian Federation will end, and after the victory in Ukraine there will be an increase in prosperity. This will be especially noticeable from the beginning of 2023, as investments worth $200 billion will be attracted to restore the country.

What will rise in price in Ukraine?

First Deputy Minister of Agrarian Policy of Ukraine Taras Vysotsky told how the temporary occupation of Kherson and Zaporozhye regions will affect the economy. In the southern regions, there are already serious problems with the supply of vegetables.

First of all, there will be less young onions, carrots and beets, which were grown in the mentioned areas. Although the shortage of basic products should not be expected.

Ukrainians will have enough potatoes for consumption, and sugar beets can even be sold for export. Sunflowers for oil are also in stock.

“About 90% of what was planned to be sown this year has already been sown”Vysotsky noted.

Farmers ensured the sowing of the following crops:

• 200 thousand hectares of spring wheat;
• almost 1 million hectares of spring barley;
• 157 thousand hectares of oats;
• 50 thousand hectares of buckwheat and millet;
• 4 million hectares of sunflower.

Earlier, a deputy of the Kherson Regional Council Serhiy Khlon said that the occupiers were literally robbing Ukrainian farmers. Find out how salt deficiency will affect the world.