Ukraine: Industrial production continues to plummet in February
March 23, 2015
In February, industrial production fell 22.5% over the same month last year, according to data released by the State Statistics Service of Ukraine. The result was a deterioration from January’s 21.3% decrease and marked the 14th consecutive month of decline amid the geopolitical tensions in the country. Further, February’s figure marked the sharpest drop in 66 months. Significant falls 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 January (no Feb data?) plummeted 89.0% annually in Luhansk and 49.4% in Donetsk.
On a monthly basis, industrial production decreased a seasonally-adjusted 1.6% in February, which was a significant improvement from the 19.7% fall in January. The annual average variation in industrial output fell to minus 13.1% from January’s minus 11.5%.