Industrial production in Ukraine grew by 5.9% y/y in 2023

In 2023, industrial production in Ukraine increased by 5.9% compared to 2022. In December, the figure increased by 22.6% compared to the same month of the previous year and by 7.9% m/m. This is evidenced by data from the State Statistics Service.

Over the past year, production in steel industry and finished steel products increased by 8% compared to 2022, while production in steel ore mining decreased by 10.2% y/y.

The annualized figure for steel industry increased due to an improvement in the fourth quarter of 2023, as the results were negative in January-September. However, the growth is the result of a low comparison base due to the weak state of the industry in October-December 2022, when Ukraine’s industry suffered from problems with electricity supply as a result of Russian troops’ shelling of Ukraine’s energy infrastructure.

The mining industry also significantly improved its performance at the end of the year, which reduced the rate of decline in the annual indicator. This was facilitated by the opening of a sea export corridor for mining and metals cargo and, consequently, an increase in the utilization of mining and processing plants.

In December last year, production in steel industry increased by 115.5% compared to December 2022 and by 1.3% compared to the previous month. In iron ore production, the figure increased by 112.1% y/y and 28.3% m/m.

As GMK Center reported earlier, in 2022, industrial production in Ukraine decreased by 36.9% compared to 2021. In December, the figure decreased by 44.1% y-o-y and 3.7% m/ь.

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

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