Moldova’s industry returns to pre-crisis growth pattern

Moldova’s industry returns to pre-crisis growth pattern
By bne IntelliNews September 21, 2021

Moldova’s seasonally industrial production index increased by another 0.8% m/m in July after the 7.5% monthly recovery boasted in June, thus returning close to the record levels reported before the pandemic.

The country’s industry saw a steep slowdown in May (-8.6% m/m) driven by weaker external demand while the recovery was helped by the subsidiaries of foreign industrial groups resuming activity.

In annual terms, the industrial output still increased by an impressive double-digit rate (+16.2%) in July as an effect of subdued activity last summer.

More importantly, the output index advanced by 12.5% compared to the same month in 2019.

The 24-month growth was equally strong (+12.9%) in the core manufacturing area.

The production of beverages strengthened by 44% in July compared to two years ago (+48% y/y) while other relevant sectors performing well above average are wood processing (+51% over the past 24 months), furniture production (+159%), construction materials (+24%) and metallic constructions manufacturing (+42%).

In light industry, the developments were mixed: while clothing production edged down over the past two years (-3.2%), the processing of furs and leather advanced by 14.6%.

The industrial sectors linked to the automobile industry are performing generally below the performance seen two years ago: electronic and optic devices by 9.7% and electric equipment by 32%.