Kazakhstan: Green shots in industrial production disappear in March: output plunges again
April 15, 2016
Industrial production had shown signs of an incipient recovery in the past months, but recent data suggest that output remains far from recovering. In March, industrial production contracted 1.8% over the same month last year. The reading came in below the mild 0.1% increase tallied in February and marked the fastest contraction since December. March’s deterioration stemmed from contractions overall. Mining and quarrying, electricity generation and water management saw faster contractions in March. Meanwhile, manufacturing production swung from a 1.2% increase in February to a 0.7% contraction in March.
As a result of March’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 1.7% in February to minus 1.9% in March. The trend continues to point to a deteriorating state in industrial production that Kazakhstan has not experienced in many decades.
Author: Ricardo Aceves, Senior Economist