Industrial output fell 16.6% in year-on-year terms in April, which followed March’s 0.1% decrease. April’s figure marked the worst reading since May 2009.
Looking at the details of the release, April’s downturn was driven by a steep drop in manufacturing output—likely affected by lockdown measures at home and abroad. Furthermore, the production also contracted in the electricity, gas, steam and air conditioning; and mining and quarrying sub-sectors.
On a monthly basis, industrial production plunged 16.4% in seasonally-adjusted terms in April, which was notably below March’s 4.6% fall. The reading marked the worst result on record. Meanwhile, the trend pointed down, with the annual average growth of industrial production coming in at 0.5%, down from March’s 1.8% reading.
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Vehicle and trailer production was reduced by 84% year-on-year in April, and Fiat Kragujevac is facing not only a lack of demand but also a lack of production parts, the experts from Macroeconomic Analyses and Trends (MAT) magazine underlined.
It is estimated that partial recovery of industrial production in May is likely, as indicated by the results of surveys conducted on more than 1,300 companies in Serbia.
A large number of companies announced that they will operate with two-thirds or half of the total capacity (engineering industry, textile industry), some with minimal capacity or will not start at all (production of cars and vehicle parts, most of the furniture industry, part of the production of household appliances).
“The recovery can only be partial, not only because of the demand in the country but mainly because of the problems in the countries that are our main export destinations and in the countries that supply the raw materials,” concluded the experts from MAT.
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