According to the World Bank, by the end of 2023, 55% of the population of Ukraine will live below the poverty line (with pre-war 2% and 25% this year). Instead of this Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy Danilo Getmantsev hopes that there will not be such a sharp spike in poverty next year.
“Most likely, we are talking about the forecast of the World Bank with the most pessimistic expectations. In the World Bank’s baseline scenario, the absolute poverty rate of $6.85 per day in purchasing power parity should reach 25.4% in 2022 and stabilize next year at 23.3%.Getmantsev notes.
At the same time, Getmantsev does not want to create illusions. After all, war is always about impoverishing people. This war is no exception. The only thing that is positively uncharacteristic for our country and the current situation is how we manage to contain the impoverishment of the population, inflation, which is a tax on the poor, to restrain negative trends that are objective for war. Therefore, the real incomes of the population, of course, are falling. According to the IMF, real wages will fall by 27% in 2022, and only by 2.5% in 2023. It will stay that way as long as the war goes on.
“The support of the most socially vulnerable segments of the population depends on the government. Therefore, in spite of everything, we are indexing pensions and increasing payments to the low-income. By the beginning of the 4th quarter of 2022, the average annual pension increased by 16%. There is an increase in the minimum wage. Yes, not by much, but it has increased by UAH 200 this year”, sums up Getmantsev.
Recall, economist Andriy Novak explains whether Russia can hit the entire banking system of Ukraine at the same time.
Source: Fakty
