The industrial production index in Romania dropped by 7% y/y in April – after the 3.8% y/y contraction in Q1, the statistics office INS announced.

Romania’s economy has lost momentum over five quarters, hit by a combination of high energy prices and subdued activity in counties that host the headquarters of the local subsidiaries that depend on foreign orders from parent groups.

It was the sixth month in a row that Romania’s industry posted negative annual growth rates.

The industrial output in energy-intensive sectors such as chemistry (-16.4% y/y ) or metallurgy (-11.7% y/y) has particularly contracted. Car production (+6.2% y/y) is among the few sectors still thriving, as well as oil refining (+14.2% y/y).

Prime minister-designate Marcel Ciolacu announced a strategy of supporting investments in private production capacities, with the aim of balancing the country’s foreign trade balance, spurring economic growth and providing price stability. 

iulian@romania-insider.com

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