Kazakhstan: Deterioration in industrial production lessens at the outset of 2016
February 16, 2016
The deterioration in Kazakhstan’s industrial production continued at the beginning of 2016, although the pace of contraction moderated. In January, industrial production decreased 0.7% over the same month last year, which came in above the 2.5% contraction registered in December and represented the softest contraction since July 2015, which was the first month in which industrial production began to contract uninterruptedly.
The milder contraction in January was the result of softer declines in mining and quarrying—which continued to reflect less oil production—in electricity generation, and water supply and sewerage. Conversely, manufacturing output rebounded and expanded, following three consecutive months of contraction.
Although industrial output’s deterioration continued to soften in January, the trend is still pointing downward, which suggests that the recovery in the sector’s production levels are far from recovering. The annual average variation in industrial production remained unchanged in January at December’s minus 1.6%.
Author: Ricardo Aceves, Senior Economist