European Industrial Production Falls in March, Significantly Rises in Croatia

Industrial production in the eurozone and EU sharply fell in March, while in Croatia it rose the most since the beginning of 2022, according to data from the European statistical office released on Monday.

Industrial production in the eurozone fell by 4.1 percent in March compared to February, when it increased by 1.5 percent, Eurostat reported. In the EU, it decreased by 3.6 percent, following a 1.4 percent increase in the previous month.

This decline in the EU is the largest since the beginning of the pandemic. The eurozone recorded a larger decline last July when production plummeted by 4.5 percent.

The production of capital goods fell the most in both areas in April, by 15.4 percent in the eurozone and by 12.9 percent in the EU. Energy production also decreased, by 0.9 percent in the eurozone and by one percent in the EU.

Only factories producing durable consumer goods operated at an increased pace, raising production by 2.8 percent in the eurozone and by two percent in the EU.

Croatia alongside Spain

Among the EU member states for which Eurostat had data, industrial production in Ireland fell the most on a monthly basis in March, by 26.3 percent. Sweden and Germany followed with production declines of 3.9 and 3.1 percent, respectively.

In Croatia, industrial production in March increased by 1.3 percent compared to February, when it rose by 0.7 percent, according to Eurostat tables. The growth rate in March is the highest since January of last year.

Spain recorded the closest percentage growth, at 1.4 percent. The highest increase was in Finland, at three percent. Slovenia followed with 2.3 percent, and the Czech Republic and Slovakia with 1.7 percent.

Eurostat did not have data for Cyprus.

Decline in Energy Production

On an annual basis, industrial production fell by 1.4 percent in the eurozone and by 1.3 percent in the EU in March, unlike February when it rose by two and 2.1 percent, respectively.

The production of energy fell the most in both areas, by 6.1 percent in the eurozone and 9.1 percent in the EU.

In the area of the common euro currency, the production of capital goods decreased by 2.1 percent, while in the EU it increased by a modest 0.4 percent.

Growth was recorded only in the sector of non-durable consumer goods, by 6.8 percent in the eurozone and by 7.1 percent in the EU.

Sharp Decline in Ireland

Among EU countries, the largest annual decline in production was recorded in Ireland, at 26.1 percent. Lithuania and Estonia followed with production declines of 16.6 and 12.6 percent, respectively.

In Croatia, industrial production in March fell on an annual basis by 0.7 percent, following a 1.6 percent decrease in February.

The largest production growth was recorded in Malta, at 12.5 percent. Denmark and Spain followed with increases of 8.9 and 5.6 percent, respectively.