Mikhail Poysik
Positive dynamics was observed in all industrial sectors. In mining and quarrying the growth amounted to 4.4%. Production and supply of electricity, gas, hot water and air conditioning increased by 7.2%.
From January to May 2025, industrial growth amounted to 1.3% compared to the same period in 2024.
This was mainly due to growth in mining and quarrying (+15.3%) and energy and utilities production (+5%). At the same time, a slight decrease of 0.3% was recorded in the manufacturing industry.
The leading sectors in the manufacturing industry in the first 5 months of the year were: tailoring, up 17.9%; manufacture of rubber and plastics products (+11.4%); chemical industry (+9.9%); and beverage production (+5.2%).
Pharmaceuticals production rose 9.6% year-on-year in May, offsetting a 12% drop in April. The sector had previously grown 34% in March. And over the last 12 months, this segment grew by 3.4%.
Among the secondary sectors for Moldova, we can mention the strong performance in the repair, maintenance and installation of machinery and equipment – growth of 81.7% in May, and 53.7% over five months. As well as production of computers, electronic and optical products – increase of 64.3% and 54.3% respectively.
Among the outsiders were the manufacture of electrical equipment – down 15.3% in five months, but up 31% in May. Textile manufacturing – down 7.3% from January-May 2024. And the entire food industry, down 2.6% in May and 11.8% over five months. This is mainly due to weak activity in sunflower seed processing, which recorded a 2.6% year-over-year decline in May. For the 12 months ending in May, the sector contracted 19.4%.
“The current growth is quite easy to explain,” says Mikhail Poysik, PhD in economics. – The fact is that in 2024, an overall decline in industrial production by 1.1% was registered. In particular, in May 2024 compared to May 2023, industrial production (gross series) decreased by 5.2%. And in the fourth quarter of last year, manufacturing shrank by 14.9%. That is, the country’s economy is just treading on the ground – “one step forward, one step back”, without developing. Besides, we should add that over the last four years, 200.4 thousand people left Moldova to work abroad. We are losing labor force, and we do not know when we will be able to get it back. Therefore, in my opinion, the degradation of industry and other sectors of the national economy will only continue in the future”.
Despite the high figures for May this year, industrial production remains below last year’s level. Aggregate data show a 0.7% year-on-year decline in overall industrial production and a 4.7% drop in manufacturing for the 12 months ending in May.
The performance of individual industries remains uneven, reflecting the continued volatility of the country’s fragile industrial base.
