Home
/
News
/

Ukraine industry decline eases to 17% drop in September

Ukraine industry decline eases to 17% drop in September

20 October 2014

Ukraine’s industrial output slowed to a 16.6% yoy decline in September compared to a 21.4% yoy drop in the prior month, Ukrstat reported on Oct. 17. The main factors in the improvement were the metals (-28.3% yoy vs. -30% yoy), machinery (-22.8% yoy vs. -31% yoy) and chemical sectors (-6.2% yoy vs. -19.6% yoy in August). At the same time, the decline in mining was almost flat (-27.1% yoy vs. -27.4% yoy) while utilities worsened (-18.8% yoy vs. -17.3% yoy). The decline in industrial output in the Luhansk region was reported unchanged compared to August (-85% yoy) while performance in the Donetsk region worsened to -59.5% yoy (vs. -58.7% yoy in the prior month).

 

Alexander Paraschiy: September industrial output is much better than we expected. Continued warfare in the east undermines prospects for improvement and we anticipated industrial output contracting on average by nearly 20% yoy at least till the end of the year. Six of the nation’s western regions are behind the improved performance, having switched to double-digit growth (industry in the Ternopil region surged 52.5% yoy).

 

Against the backdrop of the current trend, it’s likely that Ukrainian industry will contract at a rate of nearly 10% yoy in 2014. Still, in light of the extreme volatility in the economy, we prefer to maintain our previous forecast (-11.8% yoy) with a high chance for an upward revision if the positive tendency is preserved.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...