Romania’s industry shows signs of recovery in June

Romania’s industrial output in June was 11.3% lower compared to that in the same month last year, after 30% or steeper annual declines seen in April and May.

On average, the industrial output in the second quarter of the year contracted by 27% in annual terms, according to data from the National Statistics Institute (INS).

Notably, Romania’s industry was already on a negative trend even before the coronavirus outbreak: industrial growth has remained in the negative area since the second quarter of 2019, with the annual performance deteriorating to -6% year-on-year in the first quarter of 2020.

In seasonally adjusted terms, Romania’s industry went up by some 16% in June compared to May, after a similar advance in May versus April. Compared to February, the industrial activity was still some 15% lower, though.

The worst-hit industries in Q2 were the automobile industry (-55% year-on-year), followed by the light industry (-30%). Fuel processing contracted by one quarter - less than expected considering the subdued demand.

In contrast, the production of pharmaceuticals expanded by 3%. The second best-performing industry was tobacco processing, which saw a small 2% contraction.

The food industry failed to capitalize on scarcer imports and buyers’ preference for local goods and contracted by 9% in the quarter to recover toward a modest 1.7% annual growth in June.

When it comes to the industries that recovered in June, the chemical industry and pharma industry stand out with annual growth rates of 24% and 34%, respectively. Wood processing also recorded a positive growth rate (+4%).

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