Moldova’s industry shows fragile 2.1% y/y growth in Q1

Moldova’s industry shows fragile 2.1% y/y growth in Q1
/ bne IntelliNews
By bne IntelliNews May 21, 2024

Moldova’s industrial production index (chart) increased by 2.1% y/y in Q1, but the growth was entirely due to the return of the utility companies to normal after their activity contracted in the winter of 2022-2023, according to data from the statistics bureau.

Moldova’s industrial output contracted by 5% in 2022 — the first year after the war in Ukraine hit the country’s economy — and by 3.8% y/y in 2023.

The output in the manufacturing industries contracted on average by 0.3% y/y in Q1 this year dragged down by beverages manufacturing (-28.5% y/y) and light industry: -14.8% y/y in garment manufacturing.

Other industries, including the manufacturing of non-metallic mineral products (such as glass and construction materials, +15.0% y/y in Q1), metallurgy (+49.1% y/y), metallic products manufacturing (+26.6% y/y) or the manufacturing of electronic and optic parts (+125% y/y) performed much better.

The industrial activity in the sector of utilities — namely the supply of electricity, natural gas and heating — expanded by 13.1% y/y in Q1 this year, reversing the 8.6% y/y decline seen in Q1, 2023 and securing the overall positive annual industrial activity figure.