Economy Ministry names key factors that would impact industrial output

The Ukrainian Ministry of Economic Development and Trade has, in an analytical report, outlined the key factors that will determine the development of Ukraine`s industrial potential.

According to the ministry, the factors are price fluctuations in traditional commodity markets for Ukrainian products and restoration of the transport infrastructure in the east.

The ministry noted that the decrease in industrial output in July slowed down to 0.2%. After adjusting for holidays, an increase of 0.9% was recorded, compared to June. The positive dynamics in July were attributed to an increase in production in Donetsk and Luhansk regions due to the restoration of transportation communication, a recovery in the people`s purchasing power as well as an insignificant growth in investment.

”In general, the industrial production in January–July 2016 grew 1.7% year-over-year (y-o-y). It is expected that in the second half of 2016, factors such as the moderate recovery in domestic demand and investment will offset the effect of constraining factors such as additional trade barriers that have been imposed by Russia. However, the industrial production dynamics will be mainly determined by prices on the global commodity markets, including markets of ferrous metals and mineral fertilizers, as well as the situation with transport communication in the east,” the report said.

As UNIAN reported earlier, according to the State Statistics Service, the decline in industrial production in Ukraine in July 2016 slowed down to 0.2% y-o-y, from 3.4% recorded in the previous month.

The highest production growth rates in July 2016 were recorded in coal and lignite coal production (13.5% y-o-y); the manufacture of computer, electronics and optical products (9.6% y-o-y); as well as in the chemical industry (7.1% y-o-y).

The highest growth dynamics in July 2016, in comparison with the previous month, were seen in the manufacture of computer, electronic and optical products (72.8%); coal and lignite coal production (44.5%); and the production of coke and petrochemicals (14%).

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