20 February 2013 16:29 [Source: ICIS news]
LONDON (ICIS)--Ukraine's chemical industry is suffering the brunt of a reversal in Ukraine's export dynamics, Raiffeisen Bank Aval said on Wednesday.
The country's chemical exports fell by 14.6% year on year in 2012 – the worst export performance of all of Ukraine's main industries – after rising by 27.6% year on year in 2011, said the bank, the Ukrainian subsidiary of Austria-based Raiffeisen Bank International.
In January of this year, chemical production sank 19.9% year on year, while there was a 6.8% fall in the production of rubber and plastic goods and other non-metallic mineral products, according to Ukraine's State Statistics Service.
Overall industrial production in Ukraine in January fell by 3.2% year on year as the country continued to struggle with a lack of external demand for its products, it added.
In 2012, Ukraine's GDP growth rate was a meagre 0.2%, noted Raiffeisen Bank Aval.
“Ukraine's open economy, with an export to GDP ratio exceeding 50%, was hit hard last year by the deterioration in global economic conditions,” it added.
The January industrial production figures showed that the country's “key export-oriented industries – metallurgy, machine building and chemical production – continue to demonstrate negative output growth rates suggesting a persisting weakness in external demand,” the bank said.
Raiffeisen Bank Aval forecast that Ukraine would achieve 2.5% of GDP growth in 2013, conditional on an improvement in the global economic environment.
($1 = €0.75)
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