Decline in industrial production in Ukraine accelerates to 6.8% y/y in March.

By bne IntelliNews April 17, 2014

In March, the decline in industrial production accelerated to 6.8% y/y compared to 3.7% y/y contraction seen in February and 5% y/y decrease registered in January, the State Statistics Service has announced. In m/m terms, industrial production rose by 7.4%. In Q1, industrial production fell by 5% y/y versus 4.5% y/y decrease in Q1/13.

Mining and quarrying industry declined by 3.5% y/y and rose by 10.3% m/m in March. The volume of the processing industry in March contracted by 8.1% y/y and increased by 9.4% m/m.

Manufacture of food products, beverages and tobacco in March dropped by 2.6% y/y and increased by 11.2% m/m. Light industry decreased by 4.1% y/y and went up by 1.7% m/m. Production of coke and refined petroleum products declined by 6.6% y/y and grew by 4.2% m/m. Manufacture of chemicals and chemical products contracted by 2.8% y/y and rose by 16.1% m/m.

Manufacture of rubber and plastic products decreased by 3.9% y/y and went up by 21% m/m. Volumes of steel production in March fell by 11.1% y/y and increased by 11% m/m. Output of machinery went down by 17.4% y/y and grew by 3.6% m/m. The decline in industrial production in Ukraine in 2013 accelerated to 4.7% against a 0.5% decline in 2012.

The EconMin forecasts that manufacturing output will grow between 1.4% and 2.6% in 2014. Vitalii Kravchenko, director of the Ministry's industrial policy department, believes that manufacturing output will be growing under the influence of gradual increase in external demand, allowing for revitalization of production in the key trade partner-countries, and also growth internal consumer demand thanks to rise of the population's income. Prediction estimate is that industrial production will improve in 2014 between 1.4% and 2.6% on average, he stressed.

Moreover, the EconMin predicts metal products exports will be growing in 2014. According to evaluation of foreign markets of rolled metal products by the Ukrainian Industrial External Expertize (UEX), moderate improvement of the economic climate in the developed countries (USA and EU) will take place in 2014, a result of which consumption of steel will advance 3.1% (50 million tons) in 2014 over 2013, he stressed.

This year Ukraine can count on higher metal products exports owing to restoration of demand at the Near East and European Union markets, and on stronger supplies to the domestic markets thanks to more intense road construction, and modernisation of heating networks.

Related Articles

Ukrainian agriculture minister resigns amid uncertanty over land reform

Ukrainian Agrarian Minister Taras Kutovy announced his resignation on May 23 amid stalling efforts to push through a radical land privatisation reform in the former Soviet republic. "The ... more

Ukrainian parliament refuses to endorse preparations for land reform despite IMF demands

Ukraine's parliament, the Verkhovna Rada, has refused to adopt a bill that will enable  drafting a roadmap for the country's controversial land reform. On May 18, only 17 lawmakers ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss