Industrial production in Romania dragged down by high energy prices

Industrial production in Romania dragged down by high energy prices
/ bne IntelliNews
By bne IntelIiNews December 15, 2022

Industrial production in Romania contracted by 2.6% y/y in January-October and the government’s forecasting body expects only a marginal recovery in 2023.

The high energy prices and the economic slowdown in Europe are the main drivers for the bearish outlook after two years of generally declining volume of industrial activity in the country.

The industrial output index in Romania posted a marginal 0.1% y/y contraction and an encouraging +3.5% y/y advance for the manufacturing industries in October – but some sectors were severely hit by the energy prices while those gaining ground are not many.

Thus, the output in the chemical industry plunged by 21.6% y/y in January-October, according to data published by the statistics office INS and the output in the metallurgy sector contracted by 12.2% y/y in the same period.

The automobile industry posted a flat performance (-0.3% y/y) in the 10-month period, while the fabrication of other transport means (tramways is a good example given the activity of local producer Astra) posted a 7.2% y/y advance.

Oil processing has recovered from last year’s outage of Rompetrol Rafinare and posted a robust 10.5% y/y advance. Even the robust construction materials manufacturing sector posted a small 0.2% y/y decline, visibly caused by the rising prices.