Ukraine: Industrial production records another double-digit fall
July 15, 2015
In June, industrial production fell 18.1% over the same month last year, according to data released by the State Statistics Service of Ukraine. The result was a slight improvement from May’s 20.7% decrease and marked the 18th consecutive month of decline amid the geopolitical tensions in the country. Significant contractions 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. Steep 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 June plummeted 78.0% annually in Luhansk and 47.6% in Donetsk.
On a monthly basis, industrial production rose a seasonally-adjusted 1.5% in June, which contrasted May’s 0.2% fall. The annual average variation in industrial output continued to decline, decreasing from minus 17.2% in May to minus 18.4% in June.