Kazakhstan: Industrial production plummets in August following two mild expansions
September 15, 2016
Industrial production plunged 7.5% annually in August, which underscored the fragility of the recovery in the Kazakh industrial sector. The dismal result followed two timid expansions of 0.1% in June and July and marked the sharpest contraction on record.
August’s contraction was mainly the result of a massive plunge in mining and quarrying. It decreased 15.9% in August, which was well below the 1.7% drop in July. In addition, electricity and gas production fell 3.7% in August, which contrasted the 3.1% increase observed in the previous month. Water management deteriorated and swung from a 2.6% increase in July to a 4.3% contraction. The silver lining was a further expansion in manufacturing production, which grew 1.2% in August and followed the 1.5% rise in July.
Due to August’s contraction, the worsening in industrial production continued. The annual average variation in industrial production fell from minus 2.6% in July to minus 2.7% in August.
Author: Ricardo Aceves, Senior Economist