Ukraine: Industrial production falls at sharpest rate since September 2009
August 18, 2014
In July, industrial production fell at its steepest rate since September 2009, shrinking 12.1% over the same month last year. This contraction was even greater than the 5.0% reduction observed in June, according to data released by the State Statistics Service of Ukraine. 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 armed 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, where the conflict has intensified. Industrial output dropped 56.0% annually in Luhansk and 28.5% in Donetsk in July.
On a monthly basis, industrial production decreased a seasonally-adjusted 2.2% in July, which was down from the 1.5% contraction tallied in June. The annual average variation in industrial output fell to minus 4.9% from June’s minus 4.2%.