Kazakhstan: Industrial production rebounds in September following August's record drop
October 15, 2016
Industrial production in Kazakhstan rose a mild 0.1% annually in September, which contrasted August’s record drop of 7.5%. These results highlight the fragility of the recovery in the Kazakh industrial sector.
September’s rebound was the result of a much softer contraction in mining and quarrying, which decreased 1.1% annually (August: -15.9% year-on-year). In addition, electricity and gas production rebounded from last month’s drop of 3.7% to a notable 6.2% expansion, which marked a near two-year high. Conversely, manufacturing output decelerated to a 0.4% increase (August: +1.2% yoy), while the drop in water management worsened to a 6.3% drop (August: -4.3% yoy).
Due to September’s improvement, the decline in industrial production ceased and the overall trend is now pointing upwards. The annual average variation in industrial production rose from minus 2.7% in August to minus 2.3% in September.
Author: Ricardo Aceves, Senior Economist