Moldova’s industrial structure improves despite sluggish growth rates

Moldova’s industrial structure improves despite sluggish growth rates
By bne IntelliNews September 14, 2017

Moldova’s industrial output growth accelerated to 1.6% y/y in July (+3.1% y/y in the manufacturing industries) according to the data released by the statistics bureau on September 14. 

Despite the low growth rates, Moldova’s industrial output is witnessing improvements in terms of structure as export-oriented industries in particular gained ground.

The rolling industrial output in the 12 months ending July increased by 1.1% y.y, an improvement over the 0.9% industrial growth seen in 2016 or 0.7% in 2015. 

More granular data indicates structural improvements in the composition of the industrial production for the 12-month period under review, from industries based on low value added agricultural inputs (tobacco, vegetal inputs) to higher value added industries (animal production in agriculture-related industries, electronics, machinery and equipment). export-oriented industries substitute lower value-added ones, and exports advanced as a result by 17% y/y in the same 12-month reference period (in USD terms, compared to 1.1% industrial growth).

The manufacturing industries advanced by 1.3% y/y in the rolling 12 months. The 38% y/y contraction in the tobacco industry and 15% lower activity in fruit and vegetables processing were offset by the higher growth rates in meat processing (+11% y/y), wood processing (+29% y/y), rubber and plastic products (+12% y/y), electronic parts production (+11% y/y) and machinery and equipment production (+15% y/y).