Ukraine Industry

Ukraine

Ukraine: Industrial production continues double-digit contractions in March

April 23, 2015

In March, industrial production fell 21.1% over the same month last year, according to data released by the State Statistics Service of Ukraine. The result was a mild improvement from February’s 22.5% decrease and marked the 15th consecutive month of decline amid the geopolitical tensions in the country. February’s figure had marked the sharpest drop in 66 months. Significant falls in March were recorded in manufacturing, mining and quarrying, as well as in electricity, steam, gas and air conditioning.

The ongoing crisis between the Ukrainian government and pro-Russian separatist groups continues to have a large negative impact on industry, which is already weak. Large contractions were recorded in the eastern regions of Luhansk and Donetsk, Ukraine’s industrial heartland and where the conflict has been centered. Industrial output in March plummeted 90.0% annually in Luhansk and 49.4% in Donetsk.

On a monthly basis, industrial production increased a seasonally-adjusted 9.6% in March, which notably contrasted the 1.6% fall in February. The annual average variation in industrial output fell to minus 14.3% from February’s minus 13.1%.

FocusEconomics Consensus Forecast participants’ project that industrial output will contract 3.5% in 2015, which is unchanged from last month’s forecast. For 2016, panelists expect industrial production to rise 3.4%.


Author: Angela Bouzanis, Senior Economist

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Ukraine Industry Chart


Ukraine Industry March 2015

Note: Year-on-year and annual average variation of industrial production in %.
Source: State Statistics Service of Ukraine and FocusEconomics calculations.


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