Ukraine: Industrial output contracts in March amid economic blockade
May 2, 2017
Ukraine’s revival in industrial activity seen at the end of 2016 sharply reversed course in recent months. According to data released by the State Statistics Service of Ukraine, industrial production plunged 2.7% annually in March, which followed February’s sharp 4.6% fall.
The result came on the back of contractions in mining and electricity, gas, steam and air conditioning supply. However, manufacturing output rebounded after a notable contraction in February. The recent downturn in industrial output has been largely caused by a trade halt with the rebel-held eastern regions of the country. Industrial production fell over 20% in Donetsk and nearly 50% in Luhansk in March.
The trend deteriorated further in March, after reversing course in February. Annual average growth in industrial output fell from February’s 2.3% to 1.6%.
Sequential data suggested a more mixed picture for industrial production. In February, output fell a seasonally-adjusted 2.2% over the previous month, an improvement from January’s sharp 17.5% drop.