Kazakhstan: Contraction in industrial production accelerates in May
June 15, 2016
The deterioration in industrial production continued in May, following incipient signs of recovery at the beginning of the year. In May, industrial production contracted 5.3% over the same month last year, which came in below the 3.1% decrease observed in April. Looking at the details, May’s plunge reflected a sharp deterioration in mining and quarrying (May: -10.8% year-on-year; April: -3.1% yoy), while growth in manufacturing slowed to 0.7% in May (April: +0.8% yoy).
As a result of May’s contraction, the inertia of the deterioration registered in the past months continued. The trend is still pointing downward, with the annual average variation in industrial production falling from minus 2.1% in April to minus 2.7% in May. The trend continues to point to a potential period of deterioration in industrial production that Kazakhstan has not experienced in many decades.
Author: Christopher Mc Innes, Economist