The authorities of Ukraine have a great temptation to increase their wages very quickly, but this will be bad for the growth of the economy. This was stated at a press conference by the Permanent Representative of the IMF in Ukraine, Jost Ljungman. The International Monetary Fund is in favor of increasing the salaries of Ukrainians only in accordance with the growth of labor productivity, since higher rates will have a negative impact on the growth of the economy. Ljungman has noticed, that the government needs to cope with fiscal calls for preservation of growth of economy. "We are for increasing the salaries of Ukrainians, but this should be accompanied by an increase in the productivity of labor," he said.. Ljungman noted that the authorities should control the increase in salaries. "There is a temptation to increase wages very quickly, but this will be bad for the economy," he said..

As reported, the Cabinet of Ministers will consider the possibility of raising the minimum wage to 4200 hryvnia by the results of the first quarter of 2018. Finance help. ua Since January 1, 2018, the cost of living in Ukraine is set at 1,700 hryvnia, and the minimum wage is 3,723 hryvnia. In October, the National Bank said that the increase since January 1, 2017, the minimum wage added 2-2.5 percentage points to inflation. The National Bank predicts that by the end of 2018 inflation will be 9% (previous forecast - 7.3%).

Original article: IMF: salary increase is a temptation to the authorities.