Ukraine’s retail sales grew by a healthy 10.5% y/y in real terms in 2019, accelerating from from 5.8% y/y in 2018, Ukraine’s State Statistics Service reported on January 21.
Retail sales are being driven up by rising incomes, which were also up 10% in 2019.
Sales ahead of the holidays were particularly strong. In December, retail jumped 12.5% y/y, or 18.7% m/m in real terms.
Regionally, the highest retail growth in 2019 occurred in the Kyiv (20.0% y/y), Vinnytsia (18.6% y/y), and Ternopil (17.5% y/y) regions. It was slowest in the Chernivtsi (-1.7% y/y), Chernihiv (1.4% y/y), and Zakarpattia (1.5% y/y) regions.
“Apparently, a 0.2% decline of consumer prices in December helped to advance the retail sales in real terms. Intensified growth in consumer sector helps to maintain economic growth offsetting the decline in manufacturing,” Evgeniya Akhtyrko of Concorde Capital said in a note.