Page 12 - bne OUTLOOK 2022 Ukraine

The authority said that, adjusted for the effect of calendar days, industrial production in October 2021 against October 2020 rose even more – by 2.2% versus a decline of 0.9% a month earlier.
According to statistics, the increase in production was recorded in all sectors: in the extractive industry – by 0.6%; in the processing industry – by 0.4%; but the largest contribution came from the supply of electricity, gas, steam and conditioned air – 7.6%.
In January-October of 2021, the growth of industrial output year on year remained at the level of 1.4%, including 1.1% in the extractive industry, 1.5% in processing, and 1.7% in the supply of electricity, gas, steam and conditioned air.
The growth of industrial production is welcome but it remains underpar and slowing as the low base effects of the coronacrisis wear off.
The outlook for industrial production in 2022 remains entirely dependent on the rate of economic growth and amount of investment Ukraine can attract.
The country enjoys a diversified industrial base and a big consumer market. It also has some world class firms in aviation, agriculture and manufacturing, but none of these have been able to reach critical mass yet meaning that industrial growth, which in the black, remains lacklustre.
• FX and gross international reserves
Reports that Russia may be preparing to invade Ukraine have made the hryvnia and the ruble the worst performing currencies of the region in
12 UKRAINE OUTLOOK 2022 www.intellinews.com