Romania's industry kept losing ground for second consecutive year in 2024
<p>Romania's industrial output in the 12 months to November 2024 contracted by 2% y/y, according to data published by the statistics office INS. &nbsp;The contraction was slightly softer (-1.6% y/y) in the core manufacturing sector, with the segment of utilities (-4.4% y/y) dragging down the overall performance.</p>

<p>Most likely, the industrial output in Romania ended 2024 with a slightly deeper decline, after a 3% y/y contraction in 2023. The country's industry has been losing ground since before the COVID-19 crisis, from a long-term perspective.</p>

<p>Before each of the past two years of industrial decline, the state forecasting body CNP (incorrectly) predicted positive growth rates. The government's experts maintained their optimism. But the much-expected effects of the investments, among others under the sluggish Resilience Facility, failed to materialise in each of the two years.&nbsp;</p>

<p>With even more fragile grounds, the CNP projected again imminent industrial recovery in 2025: +0.4% in 2025 and over 2% per annum in the coming years.</p>

<p>On the upside, the gross value added generated by Romaia's industry has performed comparatively better than the industrial output – which indicates (very slow) improvement in the structure of the industrial activity toward more profitable segments.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com" rel="noopener" target="_blank">Silviu Matei/Dreamstime.com</a>)</em></p>