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Ukraine’s industrial capacity utilization falls to 38% amid electricity woes: Expert
The utilization of production facilities in Ukraine has plummeted to 38% due to ongoing electricity issues. This rate is anticipated to further decline to 35% during the winter months.
This assessment was provided by Andrii Dlihach, Doctor of Economics, CEO of Advanter Group, during a briefing at the Media Center Ukraine.
“Prior to the full-scale aggression, our production capacity utilization stood at approximately 75%. By the end of last year, it had decreased to 45%, maintaining that level this year. However, it has now fallen to 38% due to electricity problems. We expect it to drop to 35% in winter. Lower capacity utilization translates to higher production costs, which in turn leads to negative outcomes such as increased prices and industrial inflation,” Dlihach explained.
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