Ukraine: Industrial production continues to plummet in October
November 21, 2014
In October, industrial production fell 16.3% over the same month last year, according to data released by the State Statistics Service of Ukraine. While the figure was a slight improvement over September’s 16.6% decrease, it marked the 10th consecutive month of decline amid the geopolitical tensions in the country. Sharp drops were recorded in mining and quarrying, manufacturing as well as in electricity, gas, steam and air conditioning supply.
The conflict between the Ukrainian armed forces and pro-Russian separatist groups in the eastern regions of the country continues to have a 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 concentrated. Industrial output in October dropped 80.0% annually in Luhansk and 55.2% in Donetsk.
On a monthly basis, industrial production increased a seasonally-adjusted 7.5% in October, which followed the 4.9% rise tallied in September. The annual average variation in industrial output fell to minus 8.3% from September’s minus 7.2%.