In April 2008, the International Monetary Fund improved forecast for Ukraine’s GDP growth from 5.4% to 5.6% and worsened inflation forecast from 10.6% to 17.1%.

According to the State Statistics Committee, industrial output increased by 7.5% year-on-year (y/y) in 6 months 2008. However, the monthly growth of industrial output was down by 2.5% month-on-month in June.

The largest contribution to industrial output in 6 months 2008 was made by mechanical engineering which grew by 29.3% y/y mainly due to the rise in automobile manufacturing. Metallurgy with a 24.7% share in 2007 increased by 3.3% y/y in 6 months 2008 slightly accelerating its growth by 3.1% y/y in 5 month 2008.

Food processing maintained a high, still slightly lower than in 5 months 2008, annual growth of 5.5% y/y. Coke and refined petroleum reduced their decrease from 13.5% y/y to 12.1% y/y in 6 months 2008. (SteelGuru)

Seource: Milleneum capital