Romania’s industry sees toughest post-covid contraction in Q4

Romania’s industry sees toughest post-covid contraction in Q4
/ bne IntelliNews
By bne IntelliNews February 15, 2023

Gross industrial production in Romania contracted by 4.4% y/y in the final quarter of last year, marking the steepest contraction since factories suspended operations during the COVID-19 lockdown, according to data published by the statistics office INS.

Full-year industrial growth, measured in gross output terms, was -1.8% in 2022.

In the first three quarters of the year, the annual contraction rate ranged between 0.3% and 1.6%. The slowdown was particularly steep in December (-10% y/y).

Last year, industrial activity was particularly subdued in energy-intensive sectors such as metal production or chemicals and this had an impact on the utilities sector (-17.2% y/y in Q4, -9.4% y/y in the full year).

The core manufacturing sector generated only 0.4% lower gross output in 2022, despite the energy-intensive sectors slowing down. Speaking of full-year performance, chemicals and metal production sectors contracted by 15% and 20% respectively.

The automobile industry stagnated in terms of gross output, despite the record number of units announced by the country’s two factories.

The refining industry posted a 12.6% y/y advance as the Petromidia refinery returned to normal operations after a technical outage in 2021.

The food processing industry managed to expand by 3.2% despite shrinking purchasing power and rising prices.