Romania's industrial production decreased by 4.8% in the first six months of 2023 compared to the same period last year, according to data from the National Institute of Statistics (INS). 

The decline is even more concerning considering that the first six months of 2022 were also unfavorable for the industry, as it experienced a continuous decline. In fact, the Romanian industry is entering its fifth consecutive year of contraction in 2023, according to Ziarul Financiar.

"We believe that Romania's industrial production will be negative in 2023," economists at Erste, the owner of BCR, stated, pointing out that this is the second consecutive year of declining industrial production.

While it's true that production was positive in 2021, this growth is compared to 2020, which was a disaster, and the modest industrial sector growth was far from compensating for the 2020 decline. 

The industrial sector currently contributes less than a quarter to Romania's economy but continues to be the source of the majority of its exports. Consequently, given that the Eurozone is the primary export partner for Romania, the performance of the industry in this region serves as one of the key indicators for evaluating the trajectory of Romania's industrial sector.

radu@romania-insider.com

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