Romania’s industrial production shrinks by 12.7% in March 2020

Romania’s industrial production volume index decreased by 12.7% in March compared to the same month last year, as many factories suspended or reduced operations amid the coronavirus outbreak, the statistics office announced.

In the core manufacturing sector, the output contracted sharply by 14.4%. The activity in the utility sector declined by a more moderate rate (-3.7%), and even the mining and quarrying sector (-7.5%) prevented the sudden stop of operations.

The local industry was already recording small declines before the factories in the country suspended production in the second half of March.

For the whole first quarter of the year (Q1), the production volume index contracted by 5.9% compared to the same period last year.

The index will likely mark a deeper annual contraction in Q2, while the gradual resumption of activity should surface in better industrial production figures starting the third quarter of the year.

Concerns related to the demand, restoring the capacity of production under sanitary protection measures, and the resumption of international trade result, however, in unprecedented uncertainty associated with the industrial activity.

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