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4.0 Real Economy 4.1 Industrial production
Industrial production dropped in 2020 by 5% y/y, reports the State Statistics Service. Manufacturing was down 7%. Other big drops were: coal mining down 13%; and electricity generation down 6.6%. On the upside, steel was up 6.5% and cement was up 7%. In 2019, industrial production was down 1.8%, cancelling out a 1.1% growth in 2018.
Ukraine’s industrial output jumped 4.8% y/y in December after declining 0.3% y/y in November, the State Statistics Service reported on January 22. Seasonally adjusted output increased 1.1% m/m in December. In 2020, industrial output dropped 5.2% y/y.
Manufacturing output climbed 1.8% y/y in December (after a 3.4% y/y decline in November). In particular, the output in metallurgy improved 4.3% y/y (after 8.3% y/y growth in November), chemical production advanced 3.6% y/y (vs. 13.4% y/y decline in November), and pharmaceutical production surged 25.1% y/y (vs. 0.6% y/y decline in November). At the same time, the output in machinery declined 3.3% y/y (vs. a 15.3% y/y plunge in November), while food production slid 1.7% y/y (5.4% y/y in November).
The growth in mining accelerated to 5.4% y/y from 1.8% y/y in the prior month driven by a surge in iron ore production of 20.0% y/y. At the same time, coal production fell 2.3% y/y and oil & gas production dropped 4.5% y/y. The supply of electricity & natural gas accelerated to 15.8% y/y from 10.0% y/y growth in November.
Regionally, the steepest growth in December was observed in the Ukraine-controlled Donetsk (23.7% y/y), Odesa (22.2% y/y), and Vinnytsia (18.9% y/y) regions. Seven out of 25 regions posted a decline in industrial output. It dropped the most in Rivne (-28.6% y/y), Mykolayiv (-13.1% y/y) and Ukraine-controlled Luhansk (-12.9% y/y).
Prices in the Ukrainian industry in December 2020 increased by 14.5%
compared to December 2019, the State Statistics Service has reported.
As previously reported, in 2019 the growth in prices of industrial producers amounted to 7.4%, in 2018 to 14.2%, in 2017 to 16.5%, in 2016 to 35.7%, and 2015 to 25.4%.
The service clarified that within Ukraine the prices of industrial producers in December 2020 compared to December 2019 increased by 9.7%, for supplies outside the country by 36.1%.
Prices in the Ukrainian industry in December, compared to the previous month of 2020, increased by 1.8% after growing in November by 2%, in October by 3.8%, in September by 1.7%.
At the same time, the State Statistics Service indicates that the average annual decline in prices in industry in 2020 (January-December to January-December of the previous year) amounted to 1.6%, while in the previous years, prices increased, in particular, in 2019 by 4.1%, in 2018 by 17.4%, in 2017 by 26.4%, in 2016 by 20.5%, and 2015 by 36%.
24 UKRAINE Country Report February 2021 www.intellinews.com
