Montenegro's industrial output climbs 22% y/y in May 2013

By bne IntelliNews June 17, 2013

Montenegro's industrial production increased 22.4% y/y in May, speeding up from a 14.2% rise the month before on the back of growing utilities output, which offset falling manufacturing and mining and quarrying production, the statistics office said. In monthly terms, however, industrial output shrank 20.7% in May, swinging from a 10.6% m/m increase in April.

The annual decline of manufacturing production in May narrowed to 6.3% from 28.0% the previous month as falling basic metals output was partly offset by  rising food, beverages and pharmaceutical products output. The mining and quarrying production remained in the red in May, shrinking 11.5% y/y, due to lower coal and lignite extraction. The drop in manufacturing and mining and quarrying, however, was largely offset by surging utilities production in May (up 133%), marking its eight straight monthly expansion.

Montenegro's industrial output dropped 7.1% in 2012, due to weak manufacturing sector activity. The country’s steel and aluminium production was heavily dented by difficulties in state-owned steel mill Zeljezara Niksic and Montenegro’s sole aluminium smelter KAP. Podgorica’s commercial court recently launched proceedings for opening bankruptcy at KAP.

A possible closure of the aluminium smelter will heavily affect Montenegro’s industrial output and exports as well as their respective contributions the GDP. On the other hand, steel production might benefit from investments in Zeljezara Niksic by Turkey's Toscelik. The Turkish company acquired the troubled steel mill for EUR 15.1mn in May 2012.

Related Articles

Freedom House keeps “partly free” status for Macedonia despite new government’s efforts

Macedonia was rated only “partly free” in the latest report from international watchdog Freedom House, the same almost all of the six Western Balkan countries, despite efforts by the ... more

Milo Djukanovic leads poll ahead of Montenegro’s presidential election

Veteran politician Milo Djukanovic has the highest chance of becoming Montenegro’s next president in the 2018 ... more

Veteran Montenegrin politician Milo Djukanovic to run for president in 2018

Montenegro’s ruling Democratic Party of Socialists (DPS) will most likely propose its veteran leader, former president and prime minister Milo Djukanovic, to ... more

Dismiss