Industrial production in Ukraine fell by 3.9% y/y in January-June

The industrial production index in Ukraine fell by 3.9% in January-June 2025 compared to the same period in 2024, according to data from the State Statistics Service.

During the period, production in metallurgy and the manufacture of finished metal products increased by 8.7% y/y, while metal ore mining decreased by 6.9% y/y.

Overall, in the extractive and processing industries, the indicator fell by 4.3% y/y, in particular in the extractive industry and quarrying by 12.6% y/y, and in the processing industry by 0.6% y/y.

The supply of electricity, gas, steam, and conditioned air in January-June 2025 fell by 1.6% y/y. Electricity production decreased by 0.5% y/y, and distribution by 3.9% y/y.

At the end of June this year, industrial production fell by 1.8% month-on-month and grew by 2.9% year-on-year. In particular, metallurgy and the production of finished metal products decreased by 6.2% month-on-month and increased by 7.5% year-on-year, while metal ore mining fell by 4.6% month-on-month and 16.1% 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 metal ore mining and metallurgy 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%).