Ministry of Development Planning and Statistics (MDPS), has issued a press release for the second quarter of industrial production index to study and analyze the economic level of the state. This index details out the growth of various industrial sectors in an 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 production 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), for the second quarter amounted to 102.5 points, decline by 0.6% compared to the previous quarter (Q1-2017), and by 2.2%, when compared to the corresponding quarter of 2016. Graph (1) illustrates the time series of the IPI and quarterly rates of change since the second quarter of 2016 until second quarter of 2017.
The analysis of the quarterly IPI of the above activities is as follows:
1. “Mining”: The index of this sector recorded a decrease of 1.3% compared to the previous quarter (Q1 of 2017), as a result of the decrease in the quantities of crude oil and natural gas produced, and when compared to the corresponding quarter of the previous year ( Q2 of 2016, the IPI of Mining decline by 2.1%. Graphs (2) explain the trends of quarterly change in the mining sector during Q2, 2016 until Q2 of 2017.
2. “Manufacturing”: A picking up of 1.1% is recorded in the second quarter of 2017 compared to the previous quarter (Q1-2017), and that was due to the increase in production of four groups: “Beverages” group by 16.4%, “Manufacture of food products” by 15.7%, “Chemicals and chemical products” by 6.9%, and “Printing and reproduction of recorded media” by 5.6%.
The decline is also recorded in other four groups: “Manufacture of Manufacture of basic metals” by 13.8%, “Refined petroleum products” by 9.2%, “Manufacture of Cement & other non-metallic mineral products” by 7.9%, and “Rubber and plastic” by 4.4%, Graph (3) illustrates the trend of IPI of manufacturing sector during Q2 of 2016 until Q2 of 2017.
On the other hand, in terms of annual change, comparing to the second quarter of 2016, a decrease of 2.8% was recorded affected by the following groups: “Manufacture of basic metals” by 14.5%, “Rubber and plastic products” and “Manufacture of beverages” by 11.0% each, “Cement & other non-metallic mineral products” by 7.1% and “Manufacture of chemicals and chemical products” by 3.6%. However, “Manufacture of Manufacture of food products” group rose by 12.5%, and “Manufacture of refined petroleum products” by 11.7%.
3. “Electricity”: a sharp increase by 66.1% in the production of “Electricity” group between the second quarter of 2017 and the previous quarter)Q1-2017), while the annual increase ( a comparison between Q2- 2017 and Q2- 2016), was a 8.0%.
4. “Water and wastewater supply”: When comparing the second quarter of 2017 with the previous quarter, a rise of 4.1% was noticed. However, when comparing the second quarter of 2017 with the corresponding quarter of the previous year, a slightly decrease of 0.3%. was recorded.
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