Moldova’s industrial output decreased by 12.5% y/y in May, partly recovering from the 25% contraction seen in the month before.
Moldovan companies received modest public support during the crisis and avoided suspending operations, but this had a negative impact on the epidemiological situation in the country that is now among the harshest in Europe. The industries that lost ground were those where the demand plunged, rather than where production capacity was reduced.
The factories in light industries and those producing electronic and electric parts for European partners (automobile producers mainly) saw the deepest declines and with the most important impact on the overall dynamics. Textile production shrank by 45% y/y with a negative impact of 1.5pp on the industrial output’s annual change. Clothing production was 15% lower than last year, adding another 1.4pp negative contribution. Production of vehicles and trailers plunged by 62% y/y (-4.1pp impact) and that of electronic and electric car parts by 50% y/y or more. Furniture production also halved compared to last year.
The production of beverages also contracted dramatically by -25% y/y, with an impact of 3.1pp on the overall industrial output dynamics in May.
On the upside, food production rose by 13.5% y/y, pushing up the industrial output by 2.7pp. Vegetable oil production particularly soared by 4.5 times (+4.1pp impact). In April, the annual advance was even more impressive: 7.7 times y/y.