KIEV, Nov 14 - Ukraine's economy shrank in October compared to the same month last year - the first drop since 2005 -- dragged down by a 20 percent slump in industrial output, Reuters reported, citing the State Statistics Committee.

Data showed gross domestic product (GDP) fell 2.1% in October compared to a 7% rise a year ago. In the first 10 months of the year, growth slowed to 5.8%, against a forecast of 6.4% and 7.3% a year ago.

The steel industry, which contributes just under 30% to GDP, has borne the brunt of the global financial crisis. All steel producers in Ukraine have made drastic production cuts which weighed on industrial output overall.