Romania's industry grows for third consecutive quarter, by 1.8% q/q in Q2

Romania's industrial production volume index, adjusted for seasonality and workdays, increased by +1.8% q/q in Q2, marking the third consecutive growth of positive dynamics according to data published by the statistics office on August 14.

Compared to the same period last year, the output was 0.3% lower (-3.7% y/y in Q1) while it lagged by -6.9% below the average 2019 (pre-pandemic) level.

The quarterly advance was even steeper, +2.3% y/y, in the core manufacturing sector. Compared to 2019, the manufacturing sector lags by -5.7%.

Manufacturing of food advanced by +1.4% q/q and by +2.6% y/y, witnessing a stable rebound. There are not many industries with such dynamics – one of them being the manufacturing of pharmaceuticals, which advanced by +4.9% q/q and +24.3% y/y.

The manufacturing of automobiles (and other road vehicles) increased by +4.8% q/q but lagged -1.0% in y/y terms. In its turn, the crude refining industry lost ground on a quarterly basis (-1.0% q/q) but boasts a +17.5% y/y advance.

Metallurgy gained momentum with a +2.6% q/q advance of its output in Q2, but on a low base: it remained -15.3% below the same period last year.

For the entire H1, the industrial output contracted by -2.0% y/y.

For the rolling 12 months to June, the industrial output contracted by -1.5% y/y, close to the -1.6% average decline in 2024.

Unlike in H1, the industrial output's performance will not be dented by high-base effects.

Erste projects moderate improvement to -0.4% growth of Romania's industry in full 2025.

(Photo source: Silviu Matei/Dreamstime.com)