May industrial slowdown in Europe touches Moldova

May industrial slowdown in Europe touches Moldova
By bne IntelIiNews July 21, 2021

Industrial production in Moldova, seasonally and workday adjusted, dropped by 7.8% m/m in May in the deepest monthly decline since the 13.4% plunge during the lockdown last March.

Gross industrial production fell by 14.7% m/m, and the 11.6% y/y advance boasted by industrial production (gross terms) may be misleading due to low base effects. The 2.8% decline compared to May 2019 is more relevant. 

In April, Moldova boasted the best post-crisis industrial performance and a massive 11.6% advance compared to April 2019.

Sector-specific granular data reveal that the industrial slowdown in May was caused in Moldova by both external and internal factors as well. Industries related to the production of automobiles, which slowed in Europe amid the semiconductors crisis, reached Moldova as well.

Thus, the production of electronic and optical parts plunged by 41% m/m, production of rubber and plastic parts by 19.3% m/m and the production of electric parts by 9.8% m/m (all in gross terms).

The production of food also declined, by 2.2% m/m and 11.7% y/y. Production of non-metallic mineral products (broadly speaking construction materials) contracted by 11.5% m/m, but thanks to robust advances in the previous months it is still a notable 10.4% above May 2019.

Other industries that largely depend on exports saw sharp declines in May. A deep contraction was seen in the sector of textile production (-32.4% m/m), leather and furs processing (-16.5%) and clothing production (-4.7%).