Ukraine: Industrial production in April records another double-digit contraction
May 21, 2015
In April, industrial production fell 21.7% over the same month last year, according to data released by the State Statistics Service of Ukraine. The result was a deterioration from March’s 21.1% decrease and marked the 16th consecutive month of decline amid the geopolitical tensions in the country. Significant falls in April 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 April plummeted 89.0% annually in Luhansk and 49.5% in Donetsk.
On a monthly basis, industrial production fell a seasonally-adjusted 2.0% in April, which notably contrasted the 9.6% rise in March. The annual average variation in industrial output fell from minus 14.3% in March to minus 15.6% in April.