Industrial production in Ukraine for the first quarter decreased by 16.2% y/y

In January-March 2023, the volume of industrial production in Ukraine decreased by 16.2% compared to the same period in 2022. In March, the indicator increased by 51.2% compared to the same month of the previous year and by 19.6% m/m. This is evidenced by State Statistics Service’s data.

Over the past quarter, production in steel industry and the production of finished steel products decreased by 49.2% compared to the first quarter of 2022, and in iron ore mining – by 29.4% y/y.

In March 2023, production in steel industry increased by 2.4 times compared to March 2022 and by 27.1% compared to the previous month. In the extraction of steel ores, the indicator increased by 2.49 times y/y and 2.52 times m/m.

Mining and steel data in March showed a significant increase compared to the same month in 2022 due to a low base of comparison, as Ukrainian industry almost completely stopped in March 2022 due to the start of the Russian war against Ukraine.

At the same time, the monthly growth is likely due to the positive situation in the global steel and raw materials markets, which was observed from the beginning of this year until mid-March. Steel and mining companies increased production and export of products, which contributed to the improvement of industrial production in these industries.

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.

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