Moldova’s industrial output increased by 5.1% y/y in Q3 2014, accelerating from the modest 2.6% y/y advance in Q2, the statistics office announced on November 12. In January-September, the country’s industrial output expanded by an average rate of 4.7% y/y. Industrial growth has thus eased this year after the robust 6.4% expansion in 2013.
The core manufacturing sector has performed above average, expanding by 5.5% y/y in Q3 and 6.3% y/y in January-September.
Moldova’s industry almost recovered by 2013 to the pre-crisis level of 2008, while the core manufacturing sector exceeded pre-crisis levels. However, it faces the challenges of major changes in the country’s trade balance after the November 30 parliamentary elections that will be critical in determining the country’s political orientation either toward the European Union or the Commonwealth of Independent States. Industrial output already reflects the current political tensions as some sectors were severely hit by Russia’s embargo on certain Moldovan goods introduced in late 2013 and summer 2014.
FOOD, TEXTILES, CHEMICALS, WOOD PROCESSING UP. Food processing performed particularly well in Q3 and in January-September, expanding by 10.9% in the third quarter and by 14.4% y/y in the year to date. An abundance of raw material, no longer exported to Russia due to the embargo, explains the expansion.
Textile and apparel production also gained ground during the year, expanding by 24.3% y/y in Q3 and 13.8% y/y respectively in the first nine months of the year.
SPIRITS, TOBACCO PRODUCTION DOWN. Production of alcoholic beverages contracted by 8.5% y/y in Q3 and by 17% y/y in January-September as external demand contracted as a result of the Russian embargo. In the tobacco processing sector industrial output also plunged by 41.9% y/y in January-September and by 55.7% y/y in Q3 alone.
Industrial Output, y/y | Q1 14 | Q2 14 | Q3 14 | Jan-Sep |
. | y/y | y/y | y/y | y/y |
Industry - total | 6.3% | 2.6% | 5.1% | 4.7% |
B Mining and quarrying | 15.7% | 7.2% | -1.4% | 3.9% |
C Manufacturing | 12.4% | 2.6% | 5.5% | 6.3% |
C10 Food production | 20.1% | 14.0% | 10.9% | 14.5% |
C101 Meat processing | 13.3% | 26.4% | 33.6% | 25.3% |
C103 Fruit, vegetables processing | 8.3% | 14.0% | -2.6% | 6.1% |
C105 Dairy products | 7.3% | 8.9% | 7.7% | 8.0% |
C106 Milling | -3.8% | -23.1% | -6.3% | -10.9% |
C1071 Bread, pastry, cakes production | -2.8% | -0.9% | -1.1% | -1.6% |
C1073 Macaronni and similar production | 7.4% | -10.8% | -15.3% | -7.3% |
C1081 Sugar production | 133times | 137.5% | 70.7% | 5.8% |
C1082 Cocoa, chocolate, sweets | 6.0% | 7.6% | 3.3% | 5.8% |
C109 Animal feeds | 60.9% | -4.7% | -5.2% | 12.5% |
C11 Beverages | -10.7% | -29.0% | -8.5% | -17.0% |
C1101Spirits | 1.9% | -38.4% | -42.8% | -27.7% |
C1102 Wine | -25.2% | -30.7% | -12.3% | -22.7% |
C1107 Mineral waters | 13.3% | -2.1% | 26.4% | 11.2% |
C12 Tobacco | -20.3% | -44.1% | -55.7% | -39.9% |
C13 Manufacture of textiles | 26.3% | 13.7% | 32.7% | 24.0% |
C14 Manufacture of wearing apparel | 18.4% | 16.1% | 7.8% | 14.0% |
C15 Leather and related | -11.3% | -0.3% | 19.0% | 2.7% |
C152 Footwear | -12.3% | -2.0% | 26.9% | 4.5% |
C16 Non-furniture wood | 40.5% | 32.2% | 35.2% | 35.6% |
C17 Paper products | 3.6% | 15.7% | 3.2% | 7.5% |
C20 Chemicals | 23.2% | 32.6% | 75.1% | 46.0% |
C22 Rubber, plastic | 4.2% | -8.2% | 8.6% | 1.1% |
C23 Non-metallic mineral | 8.1% | -2.7% | 4.2% | 2.3% |
C24 Basic metals | -0.6% | 15.2% | 13.7% | 12.0% |
C25 Metal products | 7.1% | -5.1% | -9.5% | -3.9% |
C26 Computer, electronics | 216.3% | 5.8% | -46.9% | 2.7% |
C27 Electrical equipment | -7.0% | -21.3% | -11.2% | -13.9% |
C28 Machinery and equipment n.e.c. | -39.1% | 57.8% | -32.9% | -15.9% |
C31 Furniture | 3.6% | 4.5% | 17.7% | 9.2% |
D Electricity, gas, steam and air conditioning | -7.0% | 2.3% | 8.5% | -2.3% |
D351 Power generation, transmission, distribution | -6.2% | 3.4% | 9.4% | -0.5% |
D353 Steam and air conditioning supply | -8.7% | -7.6% | -5.4% | -8.4% |
Source: BNS, www.statistica.md |
The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more
This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more
Fitch Ratings has assigned Austria-based Addiko Bank AG a Long-Term Issuer Default Rating (IDR) of 'BB' and Viability Rating (VR) of 'bb' with a stable outlook. ... ... more