Ukraine: Industrial output plummets in April as economic blockade is kept in place
May 26, 2017
Ukraine’s industrial activity suffered a significant decline in April. According to data released by the country’s State Statistics Service, industrial production plummeted sharply by 6.1% annually, which followed March’s 2.7% fall. This marked the biggest contraction in nearly two years.
The result reflected broad-based declines in all three major sub-components. Mining and quarrying saw the biggest fall while electricity, gas, steam and air conditioning supply, and manufacturing contracted less sharply. The drastic downturn in industrial output has emanated from a trade halt with the rebel-held eastern regions of the country. Industrial production fell by around 24% in Donetsk and 46% in Lugansk in April.
The trend followed suit, deteriorating even further. Annual average growth in industrial output fell from March’s 1.6% to 0.7% in April.
Sequential data painted a similar picture of industrial production. In April, output fell a seasonally-adjusted 6.9% over the previous month, a sharp contrast from March’s 8.9% rise.
Author: Nihad Ahmed, Economist