Infographic: Sharp acceleration in industrial growth in February

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Източник на данните: НСИ

Comment

As seen from the latest data, in February the growth of industrial production and sales accelerated for the second consecutive month after the decline reported in December. Looking at the data, it may seem that the risks in the sector have subsided, but alas, this is still far from the case. At the moment, we have no guarantee that the growth rates reported in February can continue in the future, or even accelerate. The improved growth is most likely due to the weaker decline in industrial production in Germany, which, however, is still far from a full recovery. As a key external market for domestic industrial products, industrial growth in Germany must return before we can expect good growth levels in our country.

Given how little growth acceleration was observed in February compared to January, Germany may not be the only external factor that had an impact, and there may have been a recovery in other key markets such as Italy and Turkey. This is only speculation for now, as the industrial sector data in these countries for February has not yet been published. In any case, even with the rather positive data for February, we must be careful not to announce anything prematurely. Expectations for this year continue to be more pessimistic than for last. The ECB’s decision to launch a new round of cheap loans to the banking system in the Eurozone shows that the concern about an impending recession in the Eurozone is quite real for the central bank and we should not underestimate these expectations.

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