Industrial production in Ukraine decreased by 2.9% y/y for the first half of 2023

In January-June 2023, the volume of industrial production in Ukraine decreased by 2.9% compared to the same period in 2022. In June, the indicator increased by 13.7% compared to the same month of 2022 and decreased by 3.1% m/m. This is evidenced by State Statistics Service’s data.

During January-June, production in steel industry and the production of finished steel products decreased by 20.9% compared to the same period in 2022, and in iron ore mining – by 28.7% y/y.

In June 2023, production in steel industry increased by 25.5% compared to June 2022 and decreased by 20.9% compared to the previous month. In iron ore mining the indicator increased by 43.8% y/y and fell by 7.1% m/m.

The July indicators of iron and steel complex showed an increase compared to the same month of 2022 thanks to a low base of comparison, since in June 2022 Ukrainian industry worked at low capacities in connection with adaptation to new logistics opportunities and conditions on the European steel market.

At the same time, the fall of the June indicator compared to May is probably related to the Russian troops undermining the Kakhovska HPP, when part of the steel enterprises of the Dnipropetrovsk region found themselves in critical conditions due to problems with water supply. During January-May, a gradual increase in production in the seel sector of Ukraine was observed in monthly dynamics.

As GMK Center reported earlier, in 2022 volume of industrial production in Ukraine decreased by 36.9% compared to 2021. In December, the indicator decreased by 44.1% compared to the same month of the previous year and by 3.7% m/m.

At the same time, the worst month in terms of the dynamics of industrial production last year was March, when it fell by 53.7% after the Russian invasion. At the same time, a 2.9% increase was recorded in January, and a 10.1% decrease – in February. In the future, the indicator gradually recovered.

Production in steel industry and the production of finished steel products in 2022 decreased by 62.5% compared to 2021, and iron ore mining – by 61.7%.

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