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estimates according to Minister Stepan Kubiv. "In 2018 Ukraine recorded the lowest level of the shadow economy over the past 11 years - 30% of GDP. It is 10 percentage points lower than in 2015,” Kubiv told the Verkhovna Rada on June 3. The minister added that over the past 3 years, the average salary in Ukraine in dollar terms has increased by $170, and the minimum salary by $95.
4.0 Real Economy 4.1 Industrial production
Ukraine's industrial output increased 1.6% y/y in May, slowing from 5.2% y/y in April, due to weaker growth in manufacturing, the State Statistics Service reported on June 24. Seasonally adjusted output declined 0.9% m/m. In 5M19, industrial output climbed 0.9% y/y.
Manufacturing output inched up 0.7% y/y in May (after 7.4% y/y growth in April). In particular, machinery output declined 5.0% y/y (vs. a 10.8% y/y surge in April). In addition, metallurgy growth slowed to 6.5% y/y (from 9.9% y/y in April), and food production slowed to 3.7% y/y (vs. 6.6% y/y growth in March).
Mining output increased 4.6% y/y in May (vs 2.7% y/y growth in April). In particular, coal production increased 6.8% y/y. The supply of electricity and natural gas dropped 0.3% y/y in May.
Regionally, growth was strongest in the Vinnytsia (27.8% y/y), Sumy (23.6% y/y) and Chernivtsi (18.9% y/y) regions. Declines were steepest in the Ukraine- controlled Luhansk (-15.0% y/y), Zhytomyr (-14.2% y/y) and Khmelnytskiy (- 7.0% y/y) regions.
The swings in production of the machinery sector prevented achieving consistent growth in manufacturing. Concorde Capital expects industrial output to increase 2.0% y/y in 2019 (vs. 1.6% y/y growth in 2018).
26 UKRAINE Country Report July 2019 www.intellinews.com