Moldova’s industrial output plunged by 14.4% y/y in July, when the activity in the manufacturing sector (-15.5% y/y) reached the lowest level seen in the past decade except for the March-April lockdown months in 2020.
The seasonally-adjusted industrial output index, for the manufacturing sector, dropped by 11.6% m/m in July after the 8.1% contraction in June.
The rising cost of natural gas and the stalled investment projects are most likely the cause of the shrinking industrial activity.
Compared to July 2021, the activity in the sectors of electric equipment (-68% y/y), furniture production (-61% y/y), metallic constructions (-36% y/y) and beverages (-36% y/y) marked the most relevant declines.
There were some industries that, in contrast, posted positive growth: namely the production in the chemical industry soared by 69% y/y, food manufacturing gained 25% y/y in volume terms, wood processing (not including furniture) advanced by 32% y/y and the manufacturing of furs and leather products gained 19% y/y.