Moldova’s industrial output (chart) increased by 5.0% y/y in April after a mixed performance since last September, resulting in a moderate 2.8% y/y advance in the year-to-date period, according to data published by the statistics bureau.

The core manufacturing industries posted a more impressive 10% y/y annual advance but a more moderate 2.0% y/y increase for the ytd period.

Moldova’s industry has gradually lost ground since the beginning of 2022. Russia hiked the natural gas price in the winter of 2021-2022 and then the war in Ukraine damaged the country’s economy and kept the foreign investors away.

However, some industries have recovered and posted impressive growth rates in the first months of 2024. The modest recovery has not brought industrial activity or the manufacturing sector back to the levels prevailing at the end of 2021 but rather to those seen before the COVID-19 crisis, in 2019.

In the first four months of 2024, metallurgy posted a 58% y/y advance, production of electronic and optical devices surged by 44% y/y, the output in the chemicals industry rose by 41% y/y and the volume of metallic constructions produced in Moldova rose by 34% y/y. Other industries posted robust growth as well.

Sluggish activity in the production of food (-4.6% y/y) and beverages (-14.5% y/y) as well as the longer-term decline of light industry dragged the overall performance down. Industrial output in the manufacturing industries still picked up by 2.1% y/y.