Slow recovery of the world economy and recession of the European zone, the main trade partner of Ukraine, caused low demand for main items of Ukrainian export. As a result of this, fall of metallurgy production in March made up 1.6%, machine building - 5.6%.

It is said in an analytical note of the National Bank of Ukraine about the economic state of Ukraine in March 2012.

"Thus, a drop in the CRB index (main indicator of the state of the world commodity and raw materials market), which has started at the end of the previous year, has speeded up even more in the current year to 13.5% in March in annual terms, including prices for metals reduced by 11.6% in March. As a result of this, fall of metallurgy production in March was 1.6% in annual terms, machine building - 5.6%," the press release noted.

At the same time, reduction in the volumes of production in export-oriented branches was slightly compensated by a growth of production in key industrial sectors - in the food industry (by 2.4%) and chemical industry (by 9%).

Certain slowdown of investment activity took place in March too, reduction in the volumes of construction works made up 5.6%.

Unfavorable impact of external demand was to some extent mitigated by internal consumer demand as a result of preservation of high rates of growth in real wages (by 14.7% in Q 1).

Retail trade turnover and the volumes of rendered services in March grew by 13.5% and 10.3% respectively in annual terms.

Considerable expenses of agricultural producers, in particular, as a result of the need in partial resowing of agricultural cultures, and a delay with the sowing campaign due to continued unfavorable weather led to low results in agriculture (growth of production volumes in March was 0.7%, over Q 1 - 0.5%).

As a result of differently directed trends, growth of key industries production index in March slowed down to 0.5% and made up 2.1% over Q1.

According to official data of the State Statistics Service, growth of real GDP in Q 1 was 1.8% in annual terms.

Ukrinform