How vulnerable is Romania to a weakened manufacturing industry

Mihai-Alexandru Cristea 16/03/2021 | 15:53

Romania is one of five most vulnerable countries to a weakened manufacturing industry, according to Investment Monitors Manufacturing Vulnerability Index.

By Claudiu Vrinceanu

 

With a 71,35 score, Romania is on the 5th position in Europe, after Hungary (79,57), Ireland (77,03), Poland (76,26) and Bulgaria (75,26) on the list with the countries that are most vulnerable to a weakened manufacturing industry.

Investment Monitor’s Manufacturing Vulnerability Index looks at which economies would be hit hardest if their manufacturing sector experienced a downturn.

“Globally, manufacturing has faced a challenging year in the wake of the Covid-19 pandemic. From supply chain breakdowns, workforce restrictions and unprecedented volatility in demand, manufacturing has indisputably been impacted. This has had a ripple effect across global value chains with some countries being more resilient to a manufacturing downturn than others”, according to Investment Monitor’s specialists.

Investment Monitor’s Manufacturing Vulnerability Index 2020 explores which countries are most vulnerable to a weakened manufacturing industry. The index considers employment, value added by manufacturing, number of exports, population and forecasted output growth. Using these metrics, the index examined the top 100 global foreign direct investment (FDI) locations and found that China, India, Myanmar, Egypt and the Philippines are the most vulnerable, respectively.

Notably, four of the top five most vulnerable countries are within the Asia-Pacific region. The index shows Europe to be the most vulnerable region, followed closely by Asia-Pacific. For comparison, top 3 countries are China (100.00 index), India (95.03) and Myanmar (90.95).

Industrial production, the most important indicator for the evolution of industry in Romania, decreased in November 2020 by 3.4% year / year and remained negative in 2020. Data from the National Institute of Statistics (INS) show that the industry fell for the first time month / month in November, after 6 months of growth since the fall of April.

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