During the first five months of 2023, industrial production recorded a growth of 4.6% compared to the first five months of the previous year. The growth of industrial production was mostly influenced by the growth of production in the energy sector, where electricity, gas, steam and air conditioning supply increased for 34% in the comparative period.
On the other hand, the production in the mining and quarrying and manufacturing sector had an impact on the decrease in the growth rate of industrial production, since in the observed period a decline in production in these sectors was recorded by 11.9% and 13.8%, respectively. The mining sector recorded a drop in production in all segments, i.e. mining of coal and lignite decreased in the observed period by 8.4%, while mining and metal ores decreased by 8.9%. Production in the other mining and quarrying sector (25.3%) recorded a significantly higher decline.
Negative growth in the first five months was also recorded in the manufacturing sector. The level of production in manufacturing depended on the one hand on the manufacture of food products, wearing apparel, wood and products of wood, basic pharmaceutical products, rubber and plastic products, etc. which influenced the growth of production, while on the other hand, the decline in production of basic metals, fabricated metal products, beverages, chemical and chemical products and machinery and equipment influenced the decline in total manufacturing.
The most significant growth was achieved in printing and reproduction of recorded media (83.2%) and manufacture of basic pharmaceutical products (47%). Significant growth was recorded in the manufacture of food products, which was one fifth higher compared to the first five months of the previous year. On the other hand, the manufacture of basic metals recorded a drop of 56.6%, while the manufacture of fabricated metal products decreased by 36.8% in the first five months of 2023 compared to the same period in 2022. The drop in production in the metal industry is a consequence of the reduction in aluminium production and finally its complete suspension.
At the beginning of the year, the National Energy Company of Montenegro, which is state-owned, took over the Steel Company, thus establishing a new stateowned company “EPCG-Zeljezara Niksic”. The plan is for the Electric Company of Montenegro to cooperate with a newly founded company that will produce metal structures for solar panels and support projects in the field of renewable energy sources. What are the effects of the establishment of the company and the nationalization of the economy on the industry sector and the entire economy will be seen in the coming period. Also, in the analysed period, a decrease of 40.2% was recorded in the manufacture of chemicals and chemical products.
Sign up for business news updates & special reports.
