Industrial production in Ukraine fell by 4.8% y/y in January

Production in steel industry and finished steel products increased by 15.7% y/y over the month

The industrial production index in Ukraine fell by 4.8% in January 2025 compared to January 2024. Compared to the previous month, the index decreased by 11.1%. This is evidenced by data from the State Statistics Service.

During the month, production in metallurgy and finished metal products increased by 15.7% y/y, but decreased by 6.8% m/m, and in metal ore mining it increased by 2% y/y and 0.9% m/m.

In general, in the extractive and processing industries, the indicator decreased by 3.5% y/y and 12.9% m/m, in particular, in the mining and quarrying industry – by 0.8% y/y and 1.3% m/m, and in the processing industry – by 4.8% y/y and 17.7% m/m.

The supply of electricity, gas, steam and air conditioning in January 2025 fell by 11% y/y and 0.1% m/m. Electricity generation decreased by 13.3% y/y and increased by 1.6% m/m, while distribution decreased by 8.8% y/y and 0.1% m/m.

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 decline in production last year was due to the following factors

• interruptions in energy supply due to missile strikes on energy infrastructure in the spring and summer of 2023;
• increased production costs due to rising energy prices and hryvnia devaluation;
• labor shortage.

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