Romania’s industrial growth remains strong at 8.7% y/y in July-August

Romania’s industrial growth remains strong at 8.7% y/y in July-August
By Iulian Ernst in Bucharest October 13, 2017

Romania’s industrial production index increased by an average rate of 8.7% y/y in July-August (10.3% y/y in August alone) after the robust 8.6% y/y advance in Q2, according the data from the statistics office released on October 12.

The economic recovery in country’s main trading partners in Europe and the acceleration of the activity at Ford’s car plant in Craiova are expected to further drive the country’s industrial activity.

The rolling industrial output in the past 12 months advanced by 6.5% y/y. Trend industrial growth thus accelerated from 1.7% last year and 2.8% in 2015, reaching the highest level since October 2014. Romania’s industry thus returned this year to the strong growth rates seen in 2013-2014.

Two key industries achieved strong growth rates this year: car production and optic and electronic parts manufacturing. The two sectors, with important impact on industrial output and exports, advanced by 12% y/y and 18% y/y respectively in January-August, versus the 8.9% y/y average advance of manufacturing output. Two other sectors made even stronger performances: electric equipment production (+28% y/y) and production of other machinery and equipment (+26% y/y).

Industrial Production y/y 2013 2014 2015 2016 Q1 17 Q2 17 Jul-17 Aug-17
Total 7.9% 6.1% 2.8% 1.7% 7.5% 8.6% 6.1% 6.4%
Mining&Q 2.2% 1.0% -12.5% -15.8% -3.5% 9.7% -3.3% -0.4%
Manufacturing 9.2% 7.5% 3.5% 2.6% 8.1% 9.3% 6.8% 7.1%
Utilities -1.4% -4.7% 1.3% -1.1% 4.9% 0.0% 1.1% 1.1%
Source: INS                

Data

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