According to the data of the Central Statistical Bureau, according to unadjusted data, manufacturing output in February 2021 was 0.8% lower than a year ago. According to calendar adjusted data, output increased by 0.8%.
“Despite the protracted effects of the pandemic, the manufacturing industry continues to grow. In the first months of this year, however, the situation is different – some sectors are doing better, such as wood processing and the chemical industry, while others, such as food and beverage production, are less than happy. Although overall production volumes were slightly lower in February than a year ago, this decrease was much smaller than in January. The main factor in the growth of the industry is export opportunities, ”Emphasizes Minister of Economics Jānis Vitenbergs.
In February, on an annual basis, an increase was observed in the largest sub-sector of manufacturing – wood processing – by 2.3%. The chemical industry (+ 10%), clothing (+ 22%) and machinery and equipment (+ 9.4%) also made a significant positive contribution to the sector’s growth. Production volumes also increased in other manufacturing sub-sectors.
On the other hand, negative trends in manufacturing in February, as in January, were observed in the second largest sub-sector – in food production (-7.5%). The production volumes of beverages (-36.6%), fabricated metal products (-10.5%), non-metallic minerals (-10.7%) and metals (-19.7%) also decreased in the second month.
Overall, in the first two months of the year, manufacturing output was 1.9% lower than a year ago (according to unadjusted data).
In February, year-on-year, manufacturing turnover increased at current prices. The volumes of products sold on the domestic market grew more moderately, but the volumes of products sold on exports grew faster, +2.1% and +4.5%, respectively.
Although producers are able to adapt to the current situation, new outbreaks of the epidemic and measures to limit the spread of the virus are also hampering the growth of the manufacturing industry. Economic activity in the manufacturing industry is expected to gradually increase as the epidemiological situation contributes to vaccination. Manufacturing still has potential for development, especially at the expense of rising exports.
Ministry of Economics
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