Increase of nearly 5% of public industrial production in first half of 2019

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ALGIERS- Algeria’s public industrial production rose by 5.6% during the 2nd quarter of 2019, generated by “significant improvements” in several sectors, APS learned from the National Office of Statistics (ONS).

The most important industrial sectors that participated in this performance during the first half of the current year are the iron and steel, metal, mechanical, electrical and electronic industries (ISMMEE), as well as leather, footwear and chemical industries, explained the same source.

Industrial production of ISMMEE increased by 32.6% in the first six months of 2019.

The majority of industries in this sector contributed to this performance. These include the steel and iron and steel processing industries (+ 155%), the construction of industrial vehicles (97.8%), the manufacture of consumer goods (64.3%), the manufacture of metal equipment (46.5%) and the manufacture of electrical equipment (24.4%).

However, declines in production have characterized some branches of the ISMMEE. It deals with the manufacture of consumer metal goods with (72.5%) and the production and processing of non-ferrous metals (-62.8%) and the manufacture of metal real estate (-9.8%) .

The upward trend, which began in the second quarter of 2018 for the leather and footwear industries, was confirmed in the first quarter of the current year, reaching a growth of more than 15% in the first half of 2019.

This improvement is noticeable at intermediate goods (+ 20.2%) and consumer goods (+ 5.7%).

In the Chemical Industries sector, production increased by 7.2% in the first half of 2019 and compared to the same comparison period of the previous year, mainly due to the improvement in basic organic chemicals branch (+ 112.6%), manufacturing of other intermediate plastic products (27.4%), the manufacture of other chemicals (24.3%) and finally the manufacture of pharmaceuticals ( + 3.5%).

Output in the energy (electricity) sector increased 7.3% in the first six months of the current year and compared to the same period in 2018.

The various industries, meanwhile, had a good performance with production increase of (+ 89.8%) during the comparison period.

The agri-food industries saw a rise in production, but a smaller one, 1.8% in the first half of 2019. This improvement is driven only by the milk industry with 13.8%.

This upward trend also affected the mining and quarrying sector, which rose by 0.1% in the first six months of 2019. This slight improvement is driven in particular by the phosphate ore extraction industries with (+ 10%) and salt with (+ 4.3%).

    Industry: decline in production in three sectors

From January to July 2019, the ONS data also note that three industrial sectors recorded a decline in production, compared to the same period of 2018. Thus, declines occurred in building materials (-7 , 2%), wood industries (-4.1%), textiles (-2.8%) and finally hydrocarbons.

In the building materials, ceramics and glass sector, production fell by (-7.2%). This negative variation was generated by the manufacturing branch of water binders (-9.1%) and the manufacture of building materials and red products (-3.5%).

In this sector, the branches that saw a positive trend are cement products and miscellaneous building materials with (+ 17.7%), as well as the consumer goods manufacturing and glass industries with (+ 21.4%).

The textile industries, for their part, experienced a negative performance with a decline in production estimated at -2.8% between the two comparison periods.

This decline was concentrated mainly in the production of intermediate goods (-17.5%), while the production of consumer goods and textiles increased by more than 20%.

For the wood, cork and paper industries, production fell by 4.1%, due to a decline in production in the general carpentry sector (-25.9%) and of the furniture industry (-1.9%).

On the other hand, an appreciable increase was observed in the cork industry (+ 41.1%), while the paper manufacturing branch saw an increase of 5.2%.

The hydrocarbon sector has stagnated, according to the same source, adding that production in the refining and crude oil and natural gas industries fell by -4.9% and -1.3%, respectively.

However, the liquefaction branch of natural gas improved with a rebound of 12.5%.

With regard to the 2nd quarter of 2019, the ONS explained that the industrial production of the public sector had registered an increase of 5.6%, compared to the same period in 2018.

This improvement in production was mainly driven by ISMMEE (+ 31.7%), energy (+ 9.5%), leather and footwear industries (+ 7.5%), hydrocarbons (+ 1.5%) and chemical industries (+ 1.1%).

Other sectors have seen declines. The most concerned are the wood, cork and paper industries (-9.3%), mines and quarries (-7.9%), building materials (-6.2%), textiles (- 2.6%) and agro-food industries (-1.3%).

As a reminder, the industrial production of the public sector decreased (-1.5%) in 2018 and compared to 2017.

APS

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