Ukraine: Industrial production continues to downward spiral in December
January 20, 2015
In December, industrial production fell 17.4% over the same month last year, according to data released by the State Statistics Service of Ukraine. The result was a deterioration from November’s 16.3% decrease and marked the 12th consecutive month of decline amid the geopolitical tensions in the country. Sharp drops were recorded in manufacturing, mining and quarrying, as well as in electricity, steam, gas and air conditioning.
The armed conflict between the Ukrainian armed forces 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 December dropped 83.0% annually in Luhansk and 49.1% in Donetsk.
On a monthly basis, industrial production decreased a seasonally-adjusted 2.1% in December, which followed the 2.2% fall in November. The annual average variation in industrial output fell to minus 10.8% from November’s 9.3%.