Macroeconomic Analysis of the Formation and Use of Ukraine's Gross Disposable Income

Abstract

The purpose of the article is to provide a macroeconomic analysis of the formation and use of Ukraine's gross disposable income in 2020–2024 by identifying the structural relationships between its main sources and main directions of use. Special attention is paid to the role of gross domestic product, the balance of primary incomes and the balance of current transfers in the formation of gross disposable income, as well as to the proportions between final consumption expenditure, gross saving, consumption of fixed capital and net saving in its use. Methods. The methodological basis of the study is formed by the provisions of the System of National Accounts. The research applies methods of macroeconomic, structural, dynamic and comparative analysis. Relative structural indicators are used to assess the contribution of individual components to income formation and use. Results. It is established that in 2020–2024 gross domestic product remained the main source of Ukraine's gross disposable income, although its contribution changed under the influence of external redistributive flows. The balance of primary incomes was unstable and did not serve as a steady source of income growth. The most significant change was associated with the sharp increase in the balance of current transfers in 2022–2024, which substantially strengthened the role of external support in maintaining gross disposable income. The study shows that final consumption expenditure dominated the use of income throughout the period, while the share of gross saving was much smaller. After accounting for consumption of fixed capital, net saving was negative or close to zero in most years. Conclusions. The article concludes that the structure of Ukraine's gross disposable income changed significantly during the analysed period: while GDP retained its decisive role, the importance of external current transfers increased sharply. In the structure of income use, final consumption clearly prevailed, which constrained the saving potential of the economy and limited the internal financial basis for investment in non-financial assets. The practical value of the results lies in their applicability for assessing macroeconomic reproduction proportions and the financial preconditions of the investment process.