In August, industrial production recorded a year-on-year growth of 5.8 percent, so the cumulative year-on-year increase of 2.4 percent in the period January-August remained relatively high, and for the first time since January, year-on-year growth was recorded in all three production sectors: mining, electricity and processing industry, the analysis conducted by Macroeconomic Analysis and Trends (MAT) journal showed.
“In the circumstances of the pronounced deconjuncture of the Eurozone, this fact is a curiosity and another validation of the resilience of the domestic economy.” However, this result is temporary”, MAT analysts warned, noting that it is simply not realistic that such a strong upward trend of industrial growth can be maintained in the existing environment in the long term.
They draw attention to the fact that the trends in the processing industry show the monthly jumps are mostly incidental and unpredictable.
They add that the key problem of the Serbian processing industry lies in the food industry, which participates in the total industrial production with 14.9 percent.
The physical volume of that production in the first eight months of this year compared to the same period in 2022 dropped by 0.9 percent and of the eight branches of the food industry, the largest year-on-year decrease in August was recorded in the dairy production and in processing and canning of fruits and vegetables. Despite the significantly lower food production, food prices went up drastically and are one of the main reasons for inflation hike, says MAT.
“The greed of producers (but also retailers) hit them back like a boomerang. The demand for these products is in a drastic decline, which is harming the production. Whether this is a sufficient warning to these companies remains to be seen,” concluded the MAT analysts.
(Biznis.rs, 09.10.2023)
https://biznis.rs/vesti/srbija/mat-gramzivost-proizvodjaca-i-trgovaca-vratila-se-kao-bumerang/