The industrial production index in Moldova (chart) contracted by 3.6% y/y in 2023, after a 5.0% decline in 2022, the statistics bureau announced. The activity in the core manufacturing sector contracted by 5.3% y/y in 2023.

Moldova's industrial facilities had to reduce operations dramatically in the winter of 2022 to 2023, as the natural gas resources were limited and costly. The first annual positive growth rates were thus seen (partly on low base effects) in Q4, 2023: +8.3% y/y in October and +11% y/y in December. 

The outlook remains, however, gloomy although more affordable energy may have a positive impact. However, the industrial slowdown across developed European countries has deeper effects on countries that operate as suppliers for larger industrial groups.

Over the past five years, the industrial activity in Moldova has slightly lost ground at a rate of 0.2 per year, or 0.7% per year when it comes to the manufacturing sector.

In 2023, the sectors that still managed to develop and generate more output were pharmaceuticals (+20.8% y/y), metallurgy (+29.8% y/y) and a cluster of industries producing electronic, electric and optic parts for foreign groups.

The food industry contracted by 10.6% y/y and that of alcoholic beverages by 5.2% y/y.

The pharmaceutical industry and metallurgy maintained significant positive growth rates over the past five years: 10.7% per annum and 6.6% per annum respectively.

The food and alcoholic beverages industries posted moderate annual growth rates of 1.9% p.a. and 0.9% p.a. respectively.