Industrial production in Ukraine fell by 2.5% y/y in January-August

Production in steel industry and production of finished steel products grew by 7% y/y over the period

The industrial production index in Ukraine fell by 2.5% in January-August 2025 compared to the same period in 2024, according to data from the State Statistics Service.

During this period, production in steel sector and the production of finished steel products increased by 7% year-on-year, while steel ore mining decreased by 6.9% year-on-year.

Overall, in the extractive and processing industries, the indicator decreased by 3% y/y, in particular in the extractive industry and quarrying – by 10.2% y/y, and in the processing industry – increased by 0.2% y/y.

The supply of electricity, gas, steam, and conditioned air in January-August 2025 increased by 0.4% y/y. Electricity production grew by 2.7% y/y, while distribution fell by 2.6% y/y.

At the end of August this year, industrial production fell by 3.3% month-on-month and grew by 0.5% year-on-year. In particular, in steel industry and the production of finished steel products, it increased by 5.9% month-on-month and 8.7% year-on-year, while in steel ore mining, it decreased by 4.5% month-on-month and 5.4% year-on-year.

As GMK Center reported earlier, industrial production growth in Ukraine slowed to 3.6% y/y in 2024, while in 2023, industrial production grew by 6.8% y/y. The slowdown in output last year was due to the following factors:

• power supply disruptions caused by missile strikes on energy infrastructure in the spring and summer of 2023;
• increased production costs due to rising energy prices and the devaluation of the hryvnia;
• labor shortages.

Last year, output in the steel ore mining and steel industry sectors grew by 23% y/y and 19% y/y, respectively. Among other industries, the highest industrial production growth rates were recorded in the food industry (6.2%) and the production of building materials (4.2%).