Journal articles on the topic 'Inflation (Finance) – Poland'

The aim of the article is to present the condition of the main elements of public finances: public finance deficit (budget deficit), public debt (state treasury debt) and public expenditure (budget expenditure) in Poland in 2011-2017 and on the basis of the described theoretical dependencies to determine their impact on the level of inflation during the period considered. The following methods were used in the research: analysis and logical construction and statistical methods. It was found that the state of public finances did not cause inflationary pressure in the analysed period. Inflation remained at a low level, with a tendency to transform into small deflation in some years. However, the abrupt increase in public spending in 2017 could be, according to the theory of economics, responsible (or partly responsible) for the increase in inflation in 2017. Maintaining a high rate of public expenditure growth may stimulate inflation in subsequent periods.

The purpose of this paper is to measure inflation persistence in the following countries of Central and Southeastern Europe: Slovakia, the Czech Republic, Poland, Hungary, Romania and Serbia. The study sample covers monthly data from January, 1995 to May, 2010 for Poland, Hungary and Slovakia, from January 1994 to May, 2010 for the Czech Republic, and from January, 2002 to June 2010 for Romania. The shortest sample used, from January, 2003 to September, 2010, was for Serbia and is due to the late start in the transition process. The results of this study enriched the existing ones on this topic by extending the sample period to cover even the recent years of relatively higher inflation rates and by including Romania and Serbia, which were not previously considered. The study led to two main findings: first, inflation of moderate to high magnitude persistence in Hungary, Poland, Romania and Serbia, and inflation of smaller order persistence in Slovakia and the Czech Republic was detected within the Markov switching model approach. In addition, the changes in inflation persistence often correspond to changes in variability and mean of inflation. Second, New Keynesian Phillips Curve represents a valid structural approach to describe the inflation dynamics in this region. In all the six cases studied, weights on backward and forward looking behaviors were significant, while the impact of the driving variable was insignificant only once. It is found that significant influence of the economic driving variable can be captured by real gross wage inflation and real broad money growth. The estimates show that the backward-looking term plays an important role in determining the inflation dynamics. Similar conclusions are drawn by using quarterly data in econometric estimations for the selected countries.

Abstract Most emerging market central banks have adopted inflation targeting as their monetary policy system. The heart of inflation targeting system is inflation expectations. The success of a central bank in achieving targets depends on to the extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases, its ability to affect the public expectation also increases. The public adjusts its inflation expectations based on announced inflation target only in case of that they believe that the central bank has the sufficiency to reach the inflation target. Credibility enables expectation to be formed in a forward-looking way by weakening its connection with the past. This study aims to contribute to the literature concerning the effects of credibility on monetary policy. For this purpose, using data of six emerging inflation targeting economies (Turkey, Brazil, the Czech Republic, Chile, Poland, and South Africa), the empirical tests were carried out in order to understand the effect of the credibility on the behaviour of inflation expectation in emerging economies. The findings denote that credibility is quite relevant to reduce inflation expectations and contributes to the strength of inflation targets being an anchor for inflation expectations.

Motivation: The minimum wage protect employees from excessively low wages. It helps ensure fair participation in economic development for the general public. The minimum wage in the economy is an essential element in a country’s economic policy. Decisions concerning the implementation and changes in the minimum wage are part of the socio-economic policy of the state. Research on minimum wage relate to its overall impact on the level and structure of wages, employment, productivity at work, the size of the gray economy, the level of poverty and public finances. Factors affecting changes in the minimum wage are formal and non-formal. The question therefore arises which factors are decisive in the Polish economy. Aim: The aim of this paper is to present the essence and causes of changes in the minimum wage in Poland in 2003–2020 with particular regard to formal and non-formal aspects. Results: On the basis of research carried out in Poland, a link between minimum wage and inflation was observed. There is also a fundamental relationship between the minimum wage and average wages in the economy. It has been shown that the minimum wage is not without significance for the impact on public finance sector in Poland.

The study assessed the effect of inflation targeting (IT) policy on inflation uncertainty and economic growth in African and European IT countries. This study contributes to the existing knowledge by analysing and comparing the African IT and European IT countries using two advanced approaches which include the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) and Panel Vector Autoregressive (PVAR). To determine how the IT policy affects the inflation uncertainty in selected countries, time series techniques were employed. Panel data approaches were used to determine the effect of inflation targeting on economic growth in the selected countries. The results are as follows: (1) Inflation Targeting policy is insignificant in reducing inflation uncertainty in South Africa, and the effect of the policy in Ghana is inconclusive; (2) The IT policy has a significant impact in reducing inflation uncertainty in European countries (i.e., Poland and the Czech Republic); (3) Inflation targeting has a negative impact on economic growth in African Countries; (4) The policy has a positive impact on economic growth in European Countries; (5) In comparison to European countries, the strategy has a negligible impact on economic growth in Africa. Overall, the results suggest that European countries inflation targeting regimes are more credible in terms of reducing the level of inflation uncertainty and sustaining economic growth compared to African countries. In this respect, policymakers must ensure that they assess the economic condition of an individual country before implementing such a policy.

The paper explores (former) transition economies, Poland, Czech Republic, Slovakia and the Republic of Serbia, concerning abandonment of the exchange rate targeting and fixed exchange rate regimes and movement toward explicit/implicit inflation targeting and flexible exchange rate regimes. The paper identifies different subperiods concerning crucial monetary and exchange rate regimes, and tracks the changes of specific monetary transmission channels i.e. exchange rate channel, interest rate channel, indirect and direct influences to the exchange rate, with variance decomposition of VAR/VEC model. The empirical results indicate that Polish monetary strategy toward higher monetary and exchange rate flexibility has been performed smoothly, gradually and planned, compared to the Slovak and, especially, Czech case. The comparison of three former transition economies with the Serbian case indicate strong and persistent exchange rate pass-through, low interest rate pass-through, significant indirect and direct influence to the exchange rate as potential obstacles for successful inflation targeting in the Republic of Serbia.

The goal of this paper is to analyse the economic development of Poland using the concept of macroeconomic policy regimes (MPRs). Six elements of a MPR will be identified: foreign economic policy, industrial policy, the financial system, wage policy, monetary policy and fiscal policy. Examining the functionality of the development of these elements applied to Poland is a further aim of this paper. The functionality of the development of the MPR elements will be analysed on the basis of the fulfilment of the objectives, as well as the use of the proposed instruments and strategy assigned to every element of MPR. Due to space limits, we are going to focus on the former in this paper. Taking into consideration that Poland is an emerging and a relatively open economy, foreign economic policy and industrial policy play very significant roles in restructuring of the economy towards production and exports of high value-added products, which would enable the country to follow a growth path consistent with an external balance. The financial needs of the manufacturing sector and particularly of the producers and/or exporters of high-end products need to be satisfied by the financial system, whose stability needs to be secured with the help of monetary policy. The latter is, moreover, in charge of providing low-cost finance and maintaining the stability of the exchange rate. Stabilising the inflation rate would be given to wage policy. Fiscal policy’s main tasks would be to correct aggregate demand shocks and reduce income inequality.

Providing small and medium enterprises (SMEs) with access to external finance has been a major concern for many governments and international organizations for three decades. In recent years the experiences of emerging market countries suggest that a paradigm shift is taking place in SME finance. Particularly in fast-growing emerging market countries such as Turkey, banks are increasingly targeting SMEs as a new line of banking business. This research analyzes how macroeconomic factors have contributed to increased commercial bank lending to SMEs in six emerging market countries: Turkey, Argentina, Brazil, Mexico, Chile, and Poland. Based on time series and panel data analysis, we find that a high GDP growth rate and increased competition in the banking sector have contributed to increased banking sector credit to SMEs. The findings also reveal that curbing the high inflation rate and reducing government domestic borrowing have significantly encouraged bank lending to the SME segment.

Application of Monetary Models of Exchange Rate Determination for PolandThe zloty/USD exchange rate is examined based on the Dornbusch model, the Bilson model, the Frenkel model, and the Frankel model. Empirical results show that the coefficient of the relative money supply is positive and significant, that the coefficient of the relative output is negative and significant, and that the Bilson model or the Frenkel model applies to Poland. Hence, the nominal exchange rate is positively affected by the relative interest rate and the relative expected inflation rate. The Balassa-Samuelson effect is confirmed in both models. The Bilson model has a smaller root mean squared error or mean absolute percent error than the Frenkel model.

This article takes a critical view at the process of economic change and transformation in Poland since 1989. Its describes the creation and implementation of these changes, initially referred to as the Balcerowicz Plan, in the decidedly negative context of the system of central planning. The article takes a detailed look at growth, international trade, privatization, and foreign direct investment, as well as outlining some "persistent negatives" such as transition costs, technology and infrastructure lapses, and inflation. It concludes with possible suggestions for Poland's future as a full member of the EU, participating in the euro-- perhaps as early as 2008 or 2009.

This study is aimed at estimation of the exchange rate volatility and its impact on the business cycle fluctuations in four central and eastern European countries (the Czech Republic, Hungary, Poland, and Romania). Exchange rate volatility is estimated with the EGARCH(1,1) model. It is found that exchange rate volatility is affected by the components of the Index of Economic Freedom from the Heritage Foundation, besides inflation and crisis developments. The empirical results using GMM estimation technique and comprehensive robustness checks suggest that exchange rate volatility reduces the risk of recession in the Czech Republic while the opposite effect is found for Hungary and Romania, with a neutrality for Poland. These findings continue to hold after controlling for the fiscal and monetary policy indicators. There is evidence that the RER undervaluation prevents sliding into a recession on a credible basis in Poland only, with a neutral stance for other countries. Except in Romania, higher levels of economic freedom is associated with worsening of the cyclical position of output. Among other results, stabilization policies in the recession imply fiscal tightening for the Czech Republic and Romania, higher money supply for the Czech Republic and Poland, and lower central bank reference rate for Hungary.

This contribution deals with the macroeconomic legal trends in the Eastern member states of the European Union, so called EU11: Bulgaria, Croatia, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovakia and Slovenia. The paper discusses the development from the 1990s to nowadays, emphasizing the initial changes and the consolidation after the financial crisis. Therefore, the fiscal policy bears a major attention: fiscal and budgetary stability, government debts, fiscal controls (auditing and independent fiscal councils), for a more comprehensive overview, some ports of the monetary policy will be examined: national banks and price stability. The main aim of the contribution is to confirm or disprove the hypothesis that there is any identifiable or verifiable correlation between the legislation and the macroeconomic trends: sustainable balanced budget and government debt, economic growth, inflation. The research is based on law and economics, especially law and finance methodology with quantitative analysis, because of the cross-discipline nature of the topic. The paper contains some comparative statistics to evaluate the certain results upon figures, because it is even important to match the legal provisions with the economic performance.

The turn of the 21st century is a period of the growing importance of finance in the global economy. The domination of the financial sphere about the real sphere is defined as financialization. The inflation of financial instruments, derivatives, in particular, is indicated among the symptoms of financialization. Financialization about companies is associated with the growing importance of financial motives in the decision-making processes of enterprises. The enlarging pressure of financial markets and investors forces transformations in the value management process. Companies raising capital from share issues are evaluated by investors (shareholders). In turn, management is entrusted to hired managers whose evaluation depends on the current results. To meet the requirements of the owners (shareholders), they stop taking into account the long-term development of a given undertaking and focus on achieving the required rate of return in the short term. Therefore, they limit their operational activities, and in particular long-term investment activities, in favour of short-term financial activities. They use derivatives as one of the forms of short-term profit generation. Their use is characterized by a relatively high level of risk resulting from the use of leverage in their construction. It also results in potential profits (or losses) many times higher than the capital employed. The purpose of this paper is to examine whether non-financial enterprises operating in Poland use derivatives in value management. The research was based on the analysis of indicators identifying the role of derivatives in the enterprise and determining their impact on the ROE ratio as a measure of value for shareholders. For this purpose, the financial statements of non-financial enterprises published in Poland by the Central Statistical Office for the years 2010-2017 were used.

Abstract Research background: The aim of the article is to compare Polish and US dividend companies with potential growth with dividend companies with potential value, including in the period of economic turbulence caused by the pandemic, and to identify macroeconomic determinants that affect changes in the level of share prices of dividend companies with potential value listed on the stock exchange in Poland and the US. An analysis of the literature and international studies conducted allows us to identify inflation, gross domestic product (GDP), interest rate levels, exchange rate changes, and market P/E and P/BV ratios, as well as the PMI index, as the most important macroeconomic factors. Purpose: The aim of the article was to present research on the impact of macroeconomic indicators on the prices of Polish and US shares of dividend companies, divided into shares with potential value and potential growth for the period 2016–2020. The research was enriched by analyzing the return rate on shares and the risk of the share prices of companies with potential value during the turbulence of the economy caused by the COVID-19 pandemic. Research methodology: The study was conducted using the Spearman rank correlation coefficient and significance test for the Spearman rank correlation coefficient. A non-parametric t-test was carried out to check whether the estimated correlation is statistically significant. Results: The research indicates that Polish and US dividend companies with potential value have lower average annual return rates than dividend companies with potential growth. Referring to the determinants of the share prices of US dividend companies with potential value, it was found that they are significantly determined by inflation and moderately determined by industrial production and GDP, as well as the P/BV ratio. Novelty: The added and application value are the recommendations regarding the attractiveness of investing in Polish dividend companies with potential value as compared to companies from the US market.

The aim of the article is to present the checking of econometric models in times of market and consumer changes. The development of the SFP balance, the budget deficit against real GDP in the years 2010-2019 and the debt forecast for the years 2021-2024 are presented here. It can be noted that different factors in different countries shape the budget balance. In 2009, the Baltic States were in the most difficult situation. The budget deficit and real GDP in Poland mean that a large part of the deficits in the economic situation is subordinated here. This shows that it is not cyclical factors that are behind it, but factors related to fiscal policy. The biggest problem was the problem in which the global financial crisis began and our deficits began to increase rapidly. The source of coverage had to be found. An additional problem was the pension reform related to OFE when we did not see it in the deficit, but we still had to incur a debt for funds transferred to OFE about PLN 20 billion per year. There was an idea to take some of these funds out of the sector. The pandemic has cast a shadow over our finances. The strategy prepared before the pandemic assumed that public debt would increase in nominal terms, but there would also be a significant decrease in relative terms to GDP. The flexibility that took place in 2015 caused that there was an expenditure expansion in Poland, and this consequently led to the appearance of the "gluttony effect". In Poland, there was a high increase in GDP, but Poles spent more, which made Poles "overeat" this increase. In addition, we are glad that we have a high GDP, and in fact it is falsified by inflation.

This paper is about a perspective East-West European partnership in a framework of coordinated economic policies, especially monetary policy, and a single monetary authority. The data on inflation and the service sector used to test the degree of convergence of 15 European economies versus Germany show that selected economies in the East are about to attain western standards but eastward enlargement might take place only in case of more structural changes in the East. The Czech Republic, Hungary and Poland are the countries likely to qualify for membership and join soon.

Economic freedom is a broad term with numerous aspects. The aim of the study is to increase awareness of the economic freedom components and to provide an analytical approach. Entropy, TOPSIS, ARAS, SAW, Borda Count Method, Clustering, and Spearman correlation analysis were used to assess 40 nations. The countries with the greatest per capita GDP such as Hong Kong, Singapore, and Switzerland are at the top of the economic freedom ranking. On the other side, countries with low per-capita income such as Poland, Thailand, and Russian Federation rank bottom. Governments and officials in low-scoring nations must provide an environment of stability, trust, and facilitation for their residents and foreign investors in terms of trade tariffs, inflation, and account restrictions. Individuals, groups, non-governmental organizations, and institutions should persuade decision-makers and politicians to take novel action plans in terms of taxes, inflation policies, account restrictions, and decision-making in favour of greater freedom.

The ongoing COVID-19 pandemic put further pressure on the economies, both at individual and global level and, amid already existing vulnerabilities, worsened the economic prospects. As a result of the negative effects of these tensions in tandem with global value chains disruptions, commodities’ prices increased, leading to strong inflationary pressures around the globe. Given possible permanent effects on inflation expectations, it is therefore questionable how fast those prices are to be stabilized. In this context, this paper focuses on a group of 10 European countries, namely Czechia, Hungary, Poland, Romania, France, Germany, Italy, Spain, the Netherlands and the United Kingdom, in the period spanning from 2005 to 2020. By implementing a GVAR model, the study analyses the pass-through of the external shocks stemming mainly from the Euro Area and the US to the CEE region, comparing the responses obtained for these countries with the ones of the developed economies. Considering the strong trade relationships between the analysed countries, the considered transmission channel is the commercial one. The results indicate that a supply shock in the Euro Area has a significant negative impact on the selected CEE countries’ economic growth, the offsetting factors not being strong enough to diminish the response.

This paper compares the principal macroeconomic characteristics of the Central European Five (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), which make up the CEFTA countries without the new member Romania and are referred to as the CEEC-5. Their macroeconomic characteristics can now be compared to the existing European Union members, referred to as the EU-15, thanks to the European Comparison Programmes and the harmonization of statistical methodology with EU countries. This helps to reveal the risks that may be expected when these countries join the EU, in terms of possible undesirable price shocks and weakened competitiveness. The conclusion is that harmonization of familiar macroeconomic criteria (type of the Maastricht's) cannot be separated from harmonization of real economic levels end therefore should not be seen as a rapid process that will follow the same course in every country. This is very clear even in one of the most familiar of all macroeconomic policy issues, the possible trade-off between inflation end growth.

Abstract Background The COVID-19 pandemic had a colossal impact on human society globally. There were similarities and differences in the public health and social measures taken by countries, and comparative analysis facilitates cross-country learning of contextual practices and sharing lessons to mitigate the COVID-19 pandemic impact. Our aim is to conduct a situational analysis of the public health and social measures to mitigate the health and economic impact of the COVID-19 pandemic in Turkey, Egypt, Ukraine, Kazakhstan, and Poland during 2020–2021. Methods We conducted a situational analysis of the COVID-19 pandemic response in Turkey, Egypt, Ukraine, Kazakhstan, and Poland from the perspectives of the health system and health finance, national coordination, surveillance, testing capacity, health infrastructure, healthcare workforce, medical supply, physical distancing and non-pharmaceutical interventions, health communication, impact on non-COVID-19 health services, impact on the economy, education, gender and civil liberties, and COVID-19 vaccination. Results Since the onset of the COVID-19 pandemic, Turkey, Egypt, Ukraine, Kazakhstan, and Poland have expanded COVID-19 testing and treatment capacity over time. However, they faced a shortage of healthcare workforce and medical supplies. They took population-based quarantine measures rather than individual-based isolation measures, which significantly burdened their economies and disrupted education. The unemployment rate increased, and economic growth stagnated. Economic stimulus policy was accompanied by high inflation. Despite the effort to sustain essential health services, healthcare access declined. Schools were closed for 5–11 months. Gender inequality was aggravated in Turkey and Ukraine, and an issue was raised for balancing public health measures and civil liberties in Egypt and Poland. Digital technologies played an important role in maintaining routine healthcare, education, and public health communication. Conclusions The COVID-19 pandemic has exposed weaknesses in healthcare systems in the emerging economies of Turkey, Egypt, Ukraine, Kazakhstan, and Poland, and highlighted the intricate link between health and economy. Individual-level testing, isolation, and contact tracing are effective public health interventions in mitigating the health and economic impact of the COVID-19 pandemic in comparison to population-level measures of lockdowns. Smart investments in public health, including digital health and linking health security with sustainable development, are key for economic gain, social stability, and more equitable and sustainable development.

The implementation of the EMU translates a new European policy mix. Our article proposes a study on the coordination of the monetary and budgetary policies for the Baltic States for their complete integration in the European policy mix. New members must ensure a monetary policy able to answer the objective of price stability; they take part in EMS II for three years.The budgetary sovereignty of governments is relative taking into account their obligations in accordance with the Pact of Stability and Growth. After the participation in the Monetary Union. the countries cannot change their exchange rate, they will loose weapon of the exchange rate and will have henceforth only the budgetary and fiscal policies to adjust their economies. These last are in addition limited by the criteria of convergence and the Pact of Stability and Growth.Credibility can be obtained only by affecting to each authority a specific objective, namely the price stability for the monetary authority and the soutenability of the national debt for the budgetary authority.A not balanced policy mix encourages financial turbulences, which occur when the investors have doubts as to the capacity of the country to absorb a shock (for example, in Russia). Budgetary deficit can reach a significant level. The monetary supply which can finance the deficit is then higher than the demand.According to monetarists, the budgetary discipline is associated with a partial control of prices and wages. In Poland, the “popiwek”, which is a tax on the increases in wages, attempts to reduce the budgetary deficit. Such a policy of freezed prices and wages is able to produce a fast deceleration of inflation. The public accounts thus tend to improve quickly.For monetarists, the monetary policy does not have any influence on the real sphere. The entry in the EMU supposes the loss of the exchange rate. The adjustment of the economic policy for the Member States in the event of asymmetrical shocks can be done only by the tax and budgetary policies. The latter are indirectly forced by the respect of the criteria of restoration of public finances; in the Central European East countries these problems are significant.In the current context of slowdown in economic activity, several governments of the Euro zone asked the European Central Bank to lower their rates to support the economic activity. Within this framework, we will study the impact on the growth of this new policy mix to which the Baltic States and Poland will be subjected.

The paper aims to analyze the Ukrainians income structure, to study of the ratio of real, nominal wages and the consumer prices index; to draw a scatter diagram, which makes it possible to make assumptions about a logarithmic nature of the relationship between indicators of average annual wages and GDP growth per capita by countries; to study the correlation between average annual rates GDP growth per capita and wages based on correlation-regression analysis; to determine the ways to improve the well-being in modern conditions. The living standard of the population is one of the main socio-economic categories that not only characterizes the material well-being of a person, but determines the overall result of the country's economy for a certain period as well. Satisfaction of needs has always been a vital condition of people's life. Material well-being with the income as focal point is a key factor in the population living standard analysis. All people work for the sake of obtaining an income that satisfies their needs, and, under favorable conditions – enjoy saving some income, investing in assets, being engaged in charity. The amount of income is often insufficient to meet the most important human needs. Currently, the majority of Ukrainians live below the poverty line, and the skilled workforce has emigrated abroad. Therefore, there arises the need for state regulation of wages, for reducing the disparity in income between the rich and the poor, for searching other sources of income for the population. The issue of the formation of incomes has been studied by many outstanding scientists, but the issue of formation of the population income as one of the factors of the population well-being has not lost its relevance and needs further study and research. The income of the population is one of the population welfare factors determining the level of their life activity. Periodicals, scientific papers, Internet sources, statistical information, scientific and methodical literature make the information base of the research. A scatter diagram of population incomes distribution in the world's countries by average annual growth rates wages and GDP per capita, correlation-regression model dependencies between average annual growth rates of GDP per capita and salary is used as one of the research methods. The economic-mathematical, calculation-constructive and correlation-regression methods were used in the study was well. Incomes of the population are the main source of satisfying their needs for consumer goods and services, and the level of population life quality is measured in quantity and quality of goods that they can purchase with their incomes. the quality of housing conditions and medical services depend on the income level. Wages make the main source of Ukrainian population income. In 2020, it made 62,3% in the total income structure of the population of Ukraine. In 2020, the nominal salary of the population amounted to 110,4% compared to the previous year, and real wages, made 107,4% taking into account the price factor. That is, the average rate of nominal wage growth is 13,4 percent ahead of the average real wages growth rates which indicates deterioration of the material situation of the population, inflationary processes in economy leading to wage depreciation and purchasing capability decline. The average salary in Ukraine in 2021 was UAH 14,577. Compared to 2020, it increased by 40% (UAH 10,340). The highest level of the average monthly salary in 2021 was in the industrial developed regions (Kyiv - UAH 21,347, Donetsk oblast - UAH 15,480, Kyiv oblast - UAH 15,152, Zaporizhzhia oblast - UAH 14,510 and Dnipropetrovsk oblast – 14,479 UAH. The lowest level is observed in the Volyn oblast (UAH 11,735), Kirovohrad oblast (UAH 11,658), Ternopil oblast (UAH 11,455) and Chernivtsi oblast (UAH 11,326). This differentiation of wages is predetermined by the specifics of these regions and the structure of their economic development. The indicator of the wages share in GDP was 46.2% in 2021 (to be compared with the average in the EU, salaries make up 50% of GDP). This is a good indicator for Ukraine, but the size of the GDP is low. In 2021, GDP of Ukraine made only 2.7% of the analogue for the USA, 12,1 – for Germany, 17,3% - for Great Britain and 41,4% for Poland that indicates the poverty of our country. Income growth during the studied period by almost exceeds the level of inflation by 27,9-31,4% and indicates an increase in well-being population. However, according to the IMF data regarding the rating of GDP volumes per capita in 2019, Ukraine ranked last among the world countries. During 2020-2021, Ukraine ranked 101st among the 199 world countries. The scatter diagram makes it possible to assume the presence of a logarithmic nature of the relation between the average annual wages growth and GDP per capita by country. Ukraine, Iceland, Estonia, Latvia, Lithuania, Hungary and Poland are among the countries with high GDP and wages growth rates. A low GDP and wages growth rate is observed in Australia, the Netherlands, Greece and Belgium. The correlation-regression model of the dependence between the average annual GDP growth rates per capita and wages confirms that the size of GDP per capita affects the average annual wages and this dependence must be high. Unfair distribution of national income in the country, tax evasion, and a high level of the shadow economy can be the reasons for the lack of a high correlation between the change in GDP per capita and wages in Ukraine. Ukraine is among the countries with the lowest average wages compared to developed countries. Therefore, Ukrainians have to go abroad in search of more acceptable conditions and wages. In addition, the part of the population that has remained living in the country is paid "under the table", they work in unfavorable conditions and are socially unprotected. Therefore, in order to improve the level of welfare of the population, the state should set the minimum wage corresponding to the level of the real living wage; to legalize the payment of wages; to provide benefits and subsidies to the poor and low-income segment of the population with examining their living standard; attract investments and innovations in production processes that will result in wage growth; reduce and simplify the level of taxation, which affects the reduction of the shadow sector of the economy; restrain the level of inflation; create conditions for the development of small and medium-sized businesses which will further create new jobs; reduce the corruption level, etc