Moldova's industry grows after weak increase from 2015, 2016

Chisinau, 24 January /MOLDPRES/ – The industrial output increased by 4.2 per cent within twelve months of 2017, following an anemic evolution in 2015 – 2016, when advance was 0.6 and 0.9 per cent. The rise was above expectations of the Ministry of Economy and Infrastructure (MEI), which anticipates an increase in industrial production by 1 per cent in 2017.

The ministry’s experts explain the industry growth throughout positive developments in agricultural sector, expanding the activity of foreign investors in some relatively new industry branches such as automotive industry. The industry was boosted by domestic and foreign demand for domestic industrial products, including due to opening of foreign markets, capitalization of international economic cooperation agreements which helped to increase the industrial output.

The official statistics show a sharp rise in industrial production in October –  November, respectively by 9.9 and 9.5 per cent, compared to previous quarters, which covered disaster that occurred after decline of February – April.

The MEI also announces that the manufacturing industry, which accounts for 84.5 per cent of the total industry, registered an increase of 5.2 per cent in January – November 2017. The food industry, holding 24.5 per cent of manufacturing, had an advance of 8.9 per cent. The production of beverages increased by 8.4 per cent in eleven months of 2017.

Also, increases registered both in volume of distillation, refining and mixing of alcoholic beverages (+14.2 per cent) and in volume of grape wine production (+8.1 per cent). That branch delivers relatively large shares of goods on foreign markets: it is exported around 70 per cent of wine production and about 50 per cent of alcohol production. The beverage exports increased by 13.3 per cent in respective period, accounting for about 8 per cent of total exports.

The automotive industry has become an increasingly important branch of the national economy. The state policies, aimed at attracting foreign direct investment, contributed to emergence of the industry, having an increasing impact on industrial and export sectors, said the MEI. In January – November 2017, new investment projects within the Free Economic Zones (ZEL) determined an increase in production of electric wires and cables by 39.3 per cent.

The extractive industry, although in November increased by 26 per cent, cumulatively in eleven months of 2017, maintained the negative trend, – 2.4 per cent. It is noted that the stimulation of extractive production recently was generated by increase of domestic and external demand for some products of extractive industry (gravel, sand, clay), as a result of reinvigoration of the investment activity in construction sector as well as of the increase in deliveries on foreign markets.

There is stagnation in production and supply of electricity and heat, gas, hot water and air conditioning in the energy sector.

The MEI forecasts an increase of industry in 2018 – 2019 by 5 per cent yearly and 6 per cent in 2020.

(Reporter V. Bercu, editor L. Alcaza)