Planning and Statistics Authority has issued a press release for July 2020 of industrial production index to study and analyze the economic level of the state. This index details the growth of various industrial sectors in economy such as “Mining”, “Manufacturing”, “Electricity production”, and “Water production and desalination”. It is a short-term quantitative index that measures the changes in the volume of productions of a selected basket of industrial products over a given period with respect to that in a chosen period called the base period.
The Industrial Production Index consists of three main components: "Mining" with a relative importance of 83.6%, "Manufacturing" with a relative importance of 15.2%, "Electricity" with a relative importance of 0.7%, and finally "Water" with a relative importance of 0.5%.
The Industrial Production index (IPI), July 2020 amounted to 107.3 points, increased by 2.3% compared to the previous month (June 2020), and decreased by 1.6%, when compared to the corresponding month of 2019.
The analysis of the monthly IPI of the above activities as follows:
1.“Mining”: The index of this sector showed an increase by 2.7% compared to the previous month (June 2020), as a result of the increase in the quantities of "crude oil petroleum and natural gas" by 2.7%, while "Other mining and quarrying" showed an increase by 1.5%. When compared to the corresponding month of the previous year (July 2019), the IPI of Mining decreased by 1.9%.
2.“Manufacturing”: The index of this sector showed an increase by 0.1% compared to the previous month (June 2020), The groups showed an increases include: "Manufacture of basic metals” by 13.0%, followed by “Manufacture of refined petroleum products” by 10.5%, "Manufacture of beverages" by 8.5%, and “Manufacture of Cement and other non-metallic mineral products” by 0.7%. However a decrease recorded in "Manufacture of chemicals and chemical products" by 4.0%, “Manufacture of food products” by 1.6%, and “Manufacture of rubber and plastics products” by 0.7%.
As for “Printing and reproduction of recorded media”, the Production was stopped during the month of July 2020, due to the Corona pandemic. The relative weight of this group was distributed to the rest of the sub-groups of the manufacturing sector, and then the index for industrial production was calculated.
On the other hand, in terms of annual change, comparing to July 2019, a decrease of 0.7% was recorded, affected by the following groups: “Manufacture of Cement & other non-metallic mineral products" by 11.0%, followed by “Manufacture of refined petroleum products” by 9.2%, “Manufacture of basic metals” by 4.9%, and “Manufacture of rubber and plastics products” by 2.7%. However, an increase recorded in “Manufacture of food products” by 4.5%, "Manufacture of beverages" by 4.0%, and “Manufacture of chemicals and chemical products” by 2.7%.
3.“Electricity”: An increase of 15.3% was noticed in the production of “Electricity” between July 2020 and the previous month (June2020), while the annual increase when comparing with July 2019, was 4.1%.
4. “Water”: An increase of 3.3% was noticed in the production of ‘'Water'' between July 2020 and the previous month (June 2020). Comparing with corresponding month (July 2019), an increase of 6.4% was recorded.
