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%.