Romania’s industrial activity keeps shrinking in February, despite resilient food production

Romania’s industrial output contracted by 1.8% y/y in February after the 3.5% y/y fall in January, setting the grounds for a steep contraction in the first quarter of the year, according to data published by the statistics office INS. After three years of steady industrial decline, the premises for a change in dynamics towards an expansionary episode do exist but are fragile: the public investments (that have abounded during the past years of industrial decline) and industrial recovery across Europe, particularly linked to the defence industries that may stimulate (or not) the local industry.

Erste Group remained positive about Romania’s industrial recovery this year.