Ukraine output posts 10-yr record fall
Worse to come?
Ukraine`s industrial output fell almost 30 percent in November year-on-year - the sharpest drop in a decade, the central bank`s top adviser said on Thursday, predicting worse was to come, Reuters reported.
This is the second month in a row when output data indicated a severe slowdown in Ukraine`s economy as global demand for its key products - steel and
chemicals - drops off. In October, output fell 20 percent year-on-year.
Output fell 15.2 percent month-on-month in November and 0.7 percent in January-November, against a rise of 10.7 percent in the same period last year.
`Such a fall -15.2 percent (month-on-month) and 28.6 percent to November last year -- is unprecedented since falls recorded in 1998,` central bank adviser Valery Lytvytsky told Reuters.
`We may see a correction in December, but we haven`t reached the bottom yet. January and February are always bad. Unfortunately, the fall is gathering pace,` he said.
Official data from the State Statistics Committee was due around this week.
The government is yet to decide on new macro-economic forecast for next year after the sudden appearance of a slowdown. The economy ministry said on Wednesday growth could shrink by 5 percent next year.
October`s drop in output led to a year-on-year fall in economic growth of
2.1 percent -- the first fall since 2005 -- though accumulated January-October growth was still positive at 5.8 percent, against 7.3 percent in the same period
a year ago.
`November`s output will impact on GDP, but not to the degree that other factors could not compensate,` Lytvytsky said.
`I hope that (Jan-Nov growth) will still be positive, though it might be half of 10-month growth of 5.8 percent,` he said.