Archive:Enlargement countries - industry and service statistics

Data extracted in February 2020.

Planned article update: April 2021.

Highlights

Despite falls between 2015 and 2018, industrial output in Albania was more than twice as high in 2018 as it had been in 2009, the largest increase in output over the last decade among the candidate countries and potential candidates.

Among the EU candidate countries and potential candidates, between 2009 and 2019 the volume of sales index for retail trade grew most rapidly in Bosnia and Herzegovina.

In 2018, 90 % of tourist accommodation bed places available in candidate countries and potential candidates (excluding Albania) were located in Turkey.

Calendar adjusted indices of production, industry (NACE Rev. 2), 2009-2019

This article is part of an online publication and provides information on a range of business statistics for the European Union (EU) enlargement countries, in other words the candidate countries and potential candidates. Montenegro, North Macedonia, Albania, Serbia and Turkey currently have candidate status, while Bosnia and Herzegovina and Kosovo* are potential candidates.

The article provides statistics for several business cycle indicators, including: the industrial production index, the industrial domestic output price index, construction production and costs indices, and the volume of sales index for retail trade. It also provides tourism infrastructure data relating to the number of bed places in hotels and similar accommodation.

Full article

Industrial production index

At the onset of the global financial and economic crisis, there was a sharp contraction in industrial activity in the EU-27. However, by 2010 the industrial production index had returned to growth in the EU-27 and also in most of the candidate countries and potential candidates, as can be seen from Table 1. The growth seen in the EU-27 (up 7.2 % in 2010) was maintained in 2011 (growth of 3.6 %), but this recovery was short lived as further reductions in output followed in 2012 (down 2.0 %) and 2013 (down 0.6 %). Thereafter, there were five consecutive years of growth for EU-27 industrial output, ranging between 1.2 % in 2014 and 3.3 % in 2017. The latest information shows a slowdown in activity in 2019 as output fell by 1.1 %.

Table 1: Calendar adjusted indices of production, industry (NACE Rev. 2), 2009-2019
(2015 = 100)
Source: Eurostat (sts_inpr_a)

Like the EU-27, most of the candidate countries and potential candidates for which data are available (no data for Kosovo) also recorded industrial output growth in 2010, the exception being North Macedonia where output contracted by 4.8 %. It is possible to evaluate the extent of the recovery from the crisis by comparing the mid-crisis levels of output in 2009 with the most recent data available for industrial production indices, either 2018 or 2019 depending on the economy; note that no comparison is available for Kosovo. Industrial output in Montenegro was 10.7 % higher in 2019 than in 2009 while in Bosnia and Herzegovina it was 15.1 % higher, in Serbia it was 18.4 % higher and in North Macedonia it was 27.1 % higher. Two of the countries stood out in terms of the growth of their industrial output during the last decade: in Turkey, output was 84.9 % higher in 2019 than in 2009, despite a slight fall in 2019 (the first since the crisis); in Albania, output more than doubled (up 131.1 %) between 2009 and 2018, despite falls in 2015, 2016 and 2017.

Domestic output price indices

The development of domestic output price indices — also known as domestic producer price indices (PPIs) — for industry reflects price changes in goods that are sold by manufacturers; they provide an early indication of inflation. One of the key drivers in the development of output price indices is global demand for energy resources, in particular, crude oil. Indeed, in recent years the price of oil has fluctuated far more than the price of many other goods and this has had a direct impact on costs faced by manufacturers in a range of industrial activities, with oil price fluctuations often being passed down the production chain between interlinked activities.

In 2010, 2011 and 2012, EU-27 industrial output prices rose by 2.9 %, 5.7 % and 2.7 % as they recovered from the fall experienced during the global financial and economic crisis. Thereafter, price falls were observed each year between 2013 and 2016. In 2017, 2018 and 2019, domestic industrial output prices increased again, up 3.1 %, 3.4 % and most recently 0.9 %. Overall, EU-27 industrial output prices in 2019 were 12.7 % higher than they had been at the mid-point of the crisis in 2009 (see Table 2).

Table 2: Gross domestic output price indices, industry (NACE Rev. 2), 2009-2019
(2015 = 100)
Source: Eurostat (sts_inppd_a)

Domestic output prices rose rapidly in Serbia and Turkey

Among the candidate countries and potential candidates (no data available for Bosnia and Herzegovina), the overall change of domestic industrial output prices in the latest 10-year period was positive except in Albania where there was a slight fall (down 1.1 %) between 2014 and 2018. Montenegro recorded an increase of 11.6 % between 2009 and 2019, which was just below the average for the EU-27 (up 12.7 %). Increases of 20.7 % and 23.2 % were reported for Kosovo (2009-2018) and North Macedonia (2009-2019), while much larger increases were reported between 2009 and 2019 for Serbia (50.6 %) and especially for Turkey (179.6 %).

Construction production and cost indices

The effects of the global financial and economic crisis on construction in the EU-27 were even greater than on the industrial economy. Indeed, the production index for construction in the EU-27 fell each and every year during the period 2009-2013, returning to annual growth only in 2014. From its pre-crisis high in 2008 through to 2013, the EU-27 index of production for construction fell by nearly one fifth (17.9 %; see Table 3). Between 2013 and 2018 construction output grew each year, with the overall growth in this five year period totalling 8.9 %.

Table 3: Production and cost indices, construction (NACE Rev. 2), 2008-2018
(2015 = 100)
Source: Eurostat (sts_copr_a) and (sts_copi_a)

Bosnia and Herzegovina and Serbia had a similar development (to that in the EU), with considerably lower levels of construction output after the crisis: in Bosnia and Herzegovina the level of construction output in 2018 was still 22 % below that recorded in 2008, while in Serbia the 2008 level of production was surpassed for the first time in 2017. Elsewhere there was stronger overall growth between 2008 and 2018, with construction output up 58 % and 59 % in North Macedonia and Albania, and up 152 % in Montenegro. The time series for Turkey is shorter and shows an increase of 29 % between 2008 and 2016.

Over the period 2008-2018, there were generally modest increases in the construction cost index for residential buildings in Albania (up 4 % overall; 2008-2017), the EU-27 (14 %) and North Macedonia (20 %), while there was a much stronger increase in Turkey (138 %). By contrast, the gross index of costs for residential buildings fell during several years in Montenegro and declined by 30 % overall between 2008 and 2018.

Volume of sales index for retail trade

The volume of sales index is a measure of turnover in the retail trade sector, adjusted to remove price changes (inflation). Table 4 provides data for this indicator over the period 2009-2019 and shows that the volume of sales index in the EU-27 fell by a relatively small margin during most of the early year shown in the table, with an overall reduction of 2.0 % comparing 2013 with 2009. In 2014, growth of 1.5 % was recorded, with this strengthening in 2015 to 3.3 % and stabilising between 2.0 % and 3.0 % from 2016 to 2019.

Table 4: Calendar adjusted volume of sales, retail trade (NACE Rev. 2), 2009-2019
(2015 = 100)
Source: Eurostat (sts_trtu_a)

Among the candidate countries and potential candidates, data for the volume of sales index are generally available for the period 2009-2019, with 2018 the latest reference year for Albania (no data available for Kosovo). During this period, there were often much greater fluctuations in the candidate countries and potential candidates’ volume of sales indices than the developments seen in the EU-27. Serbia was notable for its similar level of the volume of sales index at the end of the period shown in Table 4 as at the beginning, down 0.1 % overall, as falls between 2011 and 2013 outweighed growth in other years. Elsewhere, the lowest overall growth was 14.4 % between 2010 and 2019 in North Macedonia, where sales fell in four years and grew in five. By contrast, the volume of sales indices in the remaining candidate countries and potential candidates for which data are available showed almost uninterrupted growth during the period under consideration in Table 4, the only exceptions being slight falls in 2010 in Montenegro and 2019 in Turkey. Overall growth was strongest in Bosnia and Herzegovina, as the volume of sales index for retail trade grew by 88.3 % between 2009 and 2019, while corresponding rates for Montenegro, Turkey (2010-2019) and Albania (2009-2018) were 67.1 %, 51.9 % and 43.3 %. For comparison, the volume of sales grew by 12.9 % in the EU-27 between 2009 and 2019.

Number of bed places in hotels and similar accommodation

Around 90 % of the tourist accommodation bed places available in candidate countries and potential candidates were located in Turkey

In 2018, there were 12.1 million bed places available in hotels and similar establishments within the EU-27. The number of bed places grew in the EU-27 in each and every year (for which data are available) over the period 2008-2018. Note that the figures shown do not reflect occupancy rates and instead refer to the supply of available bed places.

The combined number of bed places available in hotels and similar establishments in the candidate countries and potential candidates (no data for Albania) was around 1.6 million in 2018; this was equivalent to 13.5 % of the total number of bed places in the EU-27. Turkey reported by far the highest number of bed places among the candidate countries and potential candidates, some 1.5 million in 2018, or 90 % of the total across the candidate countries and potential candidates.

Table 5: Number of bed places, hotels and similar accommodation, 2008-2018
(thousands)
Source: Eurostat (tour_cap_nat)

Turkey also recorded a large increase in its bed capacity: during the period 2008-2018 the number of bed places in Turkish hotels and similar establishments rose by 521 000, an overall increase of 54 %. For comparison, the number of bed places in the EU-27 increased by 12 % over the same period. The number of bed places also rose strongly in North Macedonia (up 110 %) as well as Bosnia and Herzegovina (55 %), while it only fell during this period in Montenegro (down 13 %).

Source data for tables and graphs

Enlargement countries — industry and services: tables and figures

Data sources

Data for the enlargement countries are collected for a wide range of indicators each year through a questionnaire that is sent by Eurostat to candidate countries or potential candidates. A network of contacts has been established for updating these questionnaires, generally within the national statistical offices, but potentially including representatives of other data-producing organisations (for example, central banks or government ministries). The statistics shown in this article are made available free-of-charge on Eurostat’s website, together with a wide range of other socio-economic indicators collected as part of this initiative.

Traditionally, short-term business statistics (STS) were concentrated on industrial and construction activities, and to a lesser extent retail trade. Since the middle of the 1990s, major developments in official statistics within the EU have seen short-term data collection efforts focus increasingly on services. These data are provided in the form of indices that allow the most rapid assessment of the economic climate within industry, construction and services, providing an early evaluation of recent developments for a range of activities. STS show developments over time, and so may be used to calculate rates of change, typically showing comparisons with the month or quarter before, or the same period of the previous year: the data presented here are annual series derived from monthly or quarterly series. Retail trade indices have particular importance because of the role of retail trade as an interface between producers and final customers, allowing retail sales turnover and volume of sales indices to be used as short-term indicators for final domestic demand by households.

Tourism, in a statistical context, refers to the activity of visitors taking a trip to a destination outside their usual environment, for less than a year. It can be for any main purpose, including business, leisure or other personal reasons. In July 2011, the European Parliament and the Council of the European Union adopted Regulation (EU) No 692/2011 concerning European statistics on tourism. Tourism statistics in the EU consist of two main components: on the one hand, statistics relating to capacity and occupancy in collective tourist accommodation; on the other, statistics relating to tourism demand. Statistics on the capacity of collective tourist accommodation include the number of establishments, the number of bedrooms and the number of bed places.

Tables in this article use the following notation:

Value in italics	data value is forecasted, provisional or estimated and is therefore likely to change;
:	not available.

Context

The profile and use of STS has expanded, as information flows have become global and the latest news release for an indicator may have significant effects on financial markets, or decisions that are taken by central banks and business leaders. STS are a key resource for those who follow developments in the business cycle, or for those who wish to trace recent developments within a particular industrial, construction or service activity. Some of the most important STS indicators are included within the principal European economic indicators (PEEIs) that are essential to the European Central Bank for conducting monetary policy within the euro area. Three PEEIs concern industrial short-term business statistics (the production index, output prices of the domestic market and import prices), a further two PEEIs concern construction short-term business statistics (the production index and building permits), while three more concern services short-term business statistics (the volume of sales in retail trade, turnover in other services and services producer prices).

The EU is a major tourist destination, with four of its Member States among the world’s top 10 destinations for international holidaymakers in 2018, according to the United Nations World Tourism Organisation. Tourism has the potential to contribute towards employment and economic growth, as well as to development in rural, peripheral or less-developed areas. These characteristics drive the demand for reliable and harmonised statistics within this field, as well as within the wider context of regional policy and sustainable development policy areas.

While basic principles and institutional frameworks for producing statistics are already in place, the enlargement countries are expected to increase progressively the quantity and quality of their data and to transmit these data to Eurostat in the context of the EU enlargement process. EU standards in the field of statistics require the existence of a statistical infrastructure based on principles such as professional independence, impartiality, relevance, confidentiality of individual data and easy access to official statistics; they cover methodology, classifications and standards for production.

Eurostat has the responsibility to ensure that statistical production of the enlargement countries complies with the EU acquis in the field of statistics. To do so, Eurostat supports the national statistical offices and other producers of official statistics through a range of initiatives, such as pilot surveys, training courses, traineeships, study visits, workshops and seminars, and participation in meetings within the European Statistical System (ESS). The ultimate goal is the provision of harmonised, high-quality data that conforms to European and international standards.

Additional information on statistical cooperation with the enlargement countries is provided here.

Notes

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.

Direct access to

Database

Candidate countries and potential candidates (cpc), see:

Industry, trade and services (cpc_in)

Candidate countries and potential candidates: short-term business statistics (cpc_insts)

Candidate countries and potential candidates: tourism (cpc_intour)

Short-term business statistics (sts), see:

Industry (sts_ind)

Production in industry (sts_ind_prod)

Producer prices in industry (sts_ind_pric)

Construction, building and civil engineering (sts_cons)

Production in construction (sts_cons_pro)

Construction cost (or producer prices), new residential buildings (sts_cons_pri)

Trade and services (sts_ts)

Wholesale and retail trade (NACE G) (sts_wrt)

Tourism (tour), see:

Annual data on tourism industries (tour_inda)

Capacity of tourist accommodation establishments (tour_cap)

Enlargement countries

Regulation (EU) No 692/2011 of 6 July 2011 concerning European statistics on tourism and repealing Council Directive 95/57/EC.
Summaries of EU legislation: Tourism statistics