It was the second worst decline since January 2011, when industrial output sank by 6.7%, and the second consecutive month of steep decline on the annual level. In January it dropped by 4.9%.
Five macroeconomists polled by Hina had predicted an annual decline of 0.8% on average. Two expected an increase of 0.5 to 1.5% and three a fall of between 1 and 3%.
"A production decline was expected, although not on such a large scale, given the unfavourable external environment, namely a decline in foreign demand because of the recession in the eurozone. On the other hand, domestic demand is weak, and restructuring processes are under way, for instance in the shipbuilding industry and the oil and chemical production sectors," said Zdeslav Santic, chief economist at Splitska Banka.