Tuesday, 12 July 2022 02:57

Industrial Production Index grew 2.7% in may 2022: BCR

Written by Evelyn Alas

The Banco Central de Reserva (BCR), states that the Índice de Producción Industrial (IPI) registered an annual growth of 2.7% in may 2022, mainly driven by higher electricity generation.

According to BCR data, the entry into operation of the Liquefied Natural Gas (LNG) Plant, favored the increase of domestic electricity injections, which were destined to supply electricity to households, industry, commerce and the public lighting network, in addition to registering an increase in exports and a reduction in imports of this supply.

The manufacturing industries also contributed to this result, mainly due to the increase in the production of paper, printing and maquila products, as an effect of the attention to external demand, with a greater volume of exports and coverage of the internal demand for toilet paper, paper for office use, cardboard boxes, as well as printed matter such as magazines, brochures, invoicing forms.

The performance of industrial production continues to be influenced by factors related to the international economic environment, given the growing increase in production costs, shortages and rising prices of raw materials and food, increases in fuel prices and other petroleum products, as well as obstacles in the dynamics of global value chains.

In addition, the BCR states that the impact of anti-inflationary policies and measures, adjustments in production processes that contribute to the reduction of costs for the elaboration and manufacture of goods, as well as for the provision of industrial services, and the strategies applied in the different links of the production processes, such as distribution and marketing channels, continue to be decisive.