Kazakhstan: Industrial production plummets at fastest pace in over six years
September 15, 2015
Industrial production in Kazakhstan took a hard hit in August, following a contraction in July. In August, industrial output plunged 6.4% over the same month last year. The reading came in below the 2.1% contraction observed in July and marked the sharpest drop since March 2009.
The strong contraction resulted from a broad-based deterioration in Kazakhstan’s industrial sector. A notable decrease was observed in mining and quarrying output. In addition, manufacturing production swung from two consecutive months of expansion to a decrease in August. Electricity generation fell in August at the same pace as in July, while water management took another hit.
As a result of the sharp decline, the trend now suggests that a recovery in industrial output is not in the cards in the coming months. The annual average variation in industrial production fell from 0.5% in July to minus 0.1% in August, the weakest level since October 2009.
Author: Ricardo Aceves, Senior Economist