Ukraine economy shrinks further in second quarter

(MENAFN- AFP) Ukraine's economy, already in deep recession, shrank even further in the second quarter as the country remained mired in crisis, official figures showed Wednesday.

Gross domestic product contracted 2.3 percent after shrinking 2.0 percent in the first quarter, according to seasonally adjusted data.

Year-on-year, it plunged 4.7 percent.

Ukraine has been in almost uninterrupted recession for more than two years and the situation has worsened in recent months because of a deep political crisis followed by an ongoing conflict in the east.

The International Monetary Fund granted Ukraine a $17-billion (13-billion euro) credit line in April as part of a $27-billion international bailout.

It has warned that economy could contract by 6.5 percent this year and IMF chief Christine Lagarde said on Tuesday that Ukraine may need more aid.

Industrial production has been under pressure for years because of the crisis in Europe's metals sector and worsening relations with Russia.

In June, the industrial indicator plunged by 5.0 percent on a 12-month comparison.

In the Donetsk and Lugansk regions - centres of a pro-Moscow insurgency - the fall was far worse.

The indicator fell respectively by 13.7 percent for Donetsk and 20.4 percent for Lugansk.