Ukraineâ€™s industrial output continued its rapid decline in December, falling for a fifth consecutive month, led by steel, chemical and machine building. Output tumbled an annual 26.6 percent, following a 28.6 year on year decline in November, and a 19.8% one in October.
December steel production slumped 42.7 percent, chemical output fell 40 percent, and machine building dropped 37.1 percent. The annual contraction rate slowed slightly in December, but this may be a statistical artefact due to what is know as the “low base effect” in December 2007, since output almost certainly fell in December over November, and we can expect it to continue to fall in the coming months (Update Friday: actually my initial guesstimate was wrong. They just published the data on the stats office website, and output was up 3.2% on December over November. This could be a result of increased exports due to the sharp drop in the value of the hryvnia, but it is too early to say at this point. To be followed closely).
For a full analysis of what is happening in Ukraine, see my As The Politicians Battle It Out Ukraine’s Economy Tunnels South In Search Of Australia