Statistics Explained

Archive:EU-Commonwealth of Independent States (CIS) - statistics on industry

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Data up to August 2014. Most recent data: Further Eurostat information, Main tables and Database.

This article focuses on the recent trends in the industrial sector (NACE rev. 2 codes B–E excluding construction or NACE rev. 2 codes B–F including construction) [1] of the Commonwealth of Independent States (CIS) countries and the EU-28 Member States. As well as the gross value added (GVA) by industry, the volume of industrial production and the (industrial) producer price index (PPI index), the agricultural and energy production changes over time are also examined in this article, to allow for a better understanding. Both agricultural and energy outputs are major inputs for the industrial sector since they are closely related to industrial products (agricultural output) and processes (energy output).

The EU-28 accounted for 18.4 % of the global GVA by industry (EUR 2 877.2 billion in 2012 — see Figure 1), while the CIS accounted for another 3.4 % (EUR 536.1 billion). Russia was by far the CIS’ dominant country in terms of GVA by industry (2.5 % of the world total and 72.5 % of the CIS total — see Figure 2) while Germany was the only EU-28 Member State with a larger GVA by industry than Russia (4.7 % of the world total and 25.3 % of the EU-28 total — see Table 1).

The share of GVA by industry in the total GVA reveals that the CIS countries relied more heavily on industrial production (29.2 % of the total GVA — see Figure 3) than the significantly more service-driven (NACE rev. 2 codes F–U) EU-28 economies (19.2 % on average).

This divergence in economic orientation grew during the 2008–13 period, when industrial production in the CIS countries grew by 4.9 % (4.4 % growth for Russia — see Figure 5), while EU-28 Member States registered a 7.9 % decline (– 22.7 % for Spain and – 19.9 % for Italy, two of the prime EU-28 industrial producers). Consequently, the average annual PPI index also evolved differently in the two blocs. The average PPI index for the EU-28 was 101.5 for the 2008–13 period, while it was significantly larger for the CIS countries (110.6 for the 2008–12 period — see Figure 5).

Agricultural output in the CIS countries also increased by 17 % between 2008 and 2013 (51.7 % for Tajikistan, over 10.7 % for all CIS countries — see Table 3), while it decreased by 0.3 % in the EU-28 Member States (– 7.2 % for Germany, – 5.8 % for Italy).

The generation of electric energy increased by 3.3 %, petroleum production by 5.8 % and coal extraction by 8.0 % in the CIS countries, while natural gas production decreased by 4.4 % (see Table 4). As far as the EU-28 is concerned, the generation of electric energy declined by 2.7 %, petroleum production by 31.7 %, coal extraction by 6.1 % and natural gas production by 22.7 %. These declines can be interpreted as both a handicap to industrial production for the EU-28 compared to the CIS countries as well as an increased dependency on imports.

Main statistical findings

Gross value added by industry

EU-28 follows China in global ranking; Russia is dominant among CIS countries

Gross value added (GVA) by industry is a measure of the wealth produced for a country by the industrial sector. The GVA by industry for the EU-28 in 2012 was EUR 2 877.2 billion (18.4 % of world total), second only to China (EUR 2 899.6 billion) (Figure 1). Russia accounted for 72.5 % of the total CIS GVA by industry in the same year (EUR 388.9 billion) (Figure 2). 

 [Figure 1 to be entered here]
 [Figure 2 to be entered here]

Germany’s GVA by industry (EUR 728.3 billion) was larger than the CIS total (EUR 536.1 billion), while Germany, the United Kingdom, France, Italy and Spain accounted for 69.7 % of the total EU-28 GVA by industry (Table 1). 

 [Table 1 to be entered here]

The share of GVA by industry in total GVA is a measure of the orientation of the national wealth production. Significant variations among EU-28 Member States and CIS countries are apparent in Figure 3. The GVA by industry in the CIS countries accounted for 29.2 % of the total GVA on average, while its share in the EU-28 Member States was significantly lower — 19.2 % on average in 2013. 

 [Figure 3 to be entered here]

Armenia, Kyrgyzstan, Tajikistan and Moldova had the lowest shares of GVA by industry of all the CIS countries. At the same time however, they had the highest shares of total GVA by agriculture, forestry and fishery (24.3 % for Tajikistan, 21.2 % for Armenia, 17.1 for Kyrgyzstan) or GVA by service sector (65.1 % for Moldova, ranking first among CIS countries).

Variations were less notable among EU-28 Member States since the total GVA was significantly more services-oriented (73.7 % of total GVA stems from the services sector against 58.5 % for the CIS, Figure 4). 

 [Figure 4 to be entered here]

Industrial production change over time

4.9 % growth for the CIS, 7.9 % drop for the EU-28 since 2008

Industrial production followed different paths in the EU-28 Member States and the CIS countries from 2008 to 2013. While the CIS countries relied on a 4.9 % growth during the global financial and economic crisis (4.4 % growth for Russia, see Figure 5), EU-28 Member States suffered significant losses (7.9 % decline on average). Japan’s industrial production also declined considerably over the same period (– 12.0 %), the Fukushima nuclear disaster being an additional contributing factor. Among main industrial producing countries globally, Spain (– 22.7 %) and Italy (– 19.9 %) were the countries that suffered the most in terms of industrial production. 

 [Figure 5 to be entered here]

Ukraine (– 10.9 %) and Moldova (– 1.1 %) were the only CIS countries to present a decline in industrial production during the 2008–13 period, while Uzbekistan (+ 47.5 %) and Armenia (+ 34.0 %) presented significant growth (Table 2). As far as EU-28 Member States are concerned, Slovakia (+ 28.9 %), Poland (+ 18.2 %) and Estonia (+ 17.1 %) presented the largest growth of all EU-28 Member States. 

 [Table 2 to be entered here]

Industrial producer prices

PPI index follows the trends in industrial production volume

The (industrial) producer price index (PPI index) is a measure of change of the price of industrial output over time. Figure 6 illustrates that the PPI index is dependent on industrial production trends.

The PPI index of the CIS countries had an average value of 109.0 for the 2008–13 period, while the value for the EU-28 Member States for the 2008–13 period stood at 101.5. The higher value of every CIS country compared to that of any EU-28 Member State indicates that the growth of industrial production in the CIS during the reference period allowed for a significantly greater increase of the PPI index than in the EU-28 Member States, which faced an overall decline in industrial production. 

 [Figure 6 to be entered here]

Agricultural and energy output

CIS outperforms EU-28 in agricultural and energy output

The production of agricultural products (agricultural output) is related to a large extent to the manufacturing industry (NACE rev. 2 code C). For example, the food industry sector is one of the largest and most important manufacturing sectors in Europe. It is the second largest (after metal) in the manufacturing industry, with 14.5 % of total manufacturing turnover [2]. Table 3 illustrates that agricultural output increased by 17 % in the CIS countries (25.4 % in Ukraine) during the 2008–13 period, while it decreased by 0.3 % in the EU-28. The least performing CIS country, Moldova, still saw a 10.7 % increase of its agricultural output, while traditionally large EU producers like Germany and Italy saw their agricultural output decrease by 7.2 % and 5.8 % respectively. 

 [Table 3 to be entered here]

The production of energy products (energy output) is closely related to a country’s potential for industrial production. Industrial processes require continuous supply of electric energy, which is a vital input for the operation of specialised equipment and machinery. Additionally, coal and petroleum products are used in various steps of the industrial production (transportation of raw materials, products etc.) and various industries (cement and steel production, electricity generation etc.). Russia accounted for 70.4 % of the electricity generated in the CIS, and also for 78.8 % of total petroleum production, 79.0 % of natural gas production and 63.1 % of coal extraction (Table 4). Petroleum production in Ukraine declined significantly from 2008 to 2012 (– 23.3 %), while natural gas production grew by 22.5 % in Kazakhstan.

During the same period, production of petroleum in the EU-28 declined by 31.7 % and production of natural gas by 22.7 %. The 5 leading industrial producing EU-28 Member States accounted for 65.4 % of the total EU-28 electricity production. The Netherlands and the United Kingdom produced 69.5 % of the EU-28’s natural gas, while Germany, Poland and the Czech Republic extracted 75.4 % of the EU-28’s coal in 2012. 

 [Table 4 to be entered here]

Data sources and availability

All data presented in this article refer to either 2013 or the 2008–13 period, except for the cases mentioned below.

Data for the gross value added (GVA) industry in current US dollars stem from the World Bank. 2012 data were used for comparability purposes.

Shares of industry GVA in total GVA were calculated using Eurostat data for the EU-28 Member States and CIS-STAT data for CIS countries (except for Turkmenistan; value calculated from World Bank data). 2012 and 2013 data were used for the CIS countries.

Data on industrial production volume and annual percentage change stem from CIS-STAT for the CIS countries and OECD for the EU-28 Member States. 2010 = 100 volume indices were calculated for the CIS countries.

Data on the (industrial) producer price index (PPI index) (PPI index) stem from CIS-STAT for the CIS countries and Eurostat for the EU-28 Member States. Data for the CIS countries refer to the 2008–13 period.

Data on agricultural output stem from CIS-STAT for the CIS countries and Eurostat for the EU-28 Member States. 2010 = 100 volume indices were calculated for the CIS and EU-28 Member States.

Eurostat data on the production of electric energy, petroleum, natural gas and coal was used for the EU-28 Member States. CIS-STAT data were used for the CIS countries. The data for the EU-28 and CIS countries refer to the 2008–12 period.

Context

The recent global financial and economic downturn has been extremely detrimental to the major industrial producing EU-28 Member States, especially Italy and Spain (19.9 % and 22.7 % decline in industrial production in 2008–13). Russia is dominant among the CIS countries in terms of industrial output (73.9 % of the total CIS GVA by industry) and has led the CIS countries in enduring the economic crisis by maintaining a constantly increasing industrial production (4.4 % growth), PPI index (109.0), agricultural (12.2 % growth) and energy output (2.8 % growth in energy production, 6.4 % growth in petroleum production and 8.2 % growth in coal extraction).

See also

Further Eurostat information

Publications

Methodology / Metadata

World Bank data on industry include construction (NACE rev. 2 code F) while the ISIC rev.4 classification is used. OECD data do not include construction.

The industrial production percentage change for the 2008–13 period is calculated as the difference between the 2013 volume index and the 2008 volume index divided by the latter. 2010 = 100 volume indices for the CIS countries were calculated using the percentage of annual changes after setting 2010 as the basis year.

Percentage changes of the (industrial) producer price index (PPI index) for the EU-28 Member States were transformed into year–1 = 100 indices for comparability purposes.

2005 = 100 agricultural production volume indices for the EU-28 Member States and 2000 = 100 agricultural production volume indices for the CIS countries were all transformed into 2010 = 100 volume indices for comparability purposes. More information on the PPI index is available in the Handbook on industrial producer price indices (PPI).

The percentage change of the production of electric energy, petroleum, natural gas and coal for the 2008–12 period is calculated as the difference between the available volume for 2012 minus the available volume for 2008 divided by the latter. Volumes for the CIS countries and EU-28 Member States are measured in different units, definitions are comparable.

Missing CIS averages and totals were calculated from available CIS country data.

Source data for tables, figures and maps (MS Excel)

External links

Notes

  1. ↑ Construction is excluded from the data presented unless stated otherwise.
  2. ↑ http://ec.europa.eu/enterprise/sectors/food/eu-market/index_en.htm


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