Romania buildings

Romania GDP Q2 2019

Romania: Second release confirms economic growth moderated in Q2

GDP grew 4.4% year-on-year in the second quarter (Q1: +5.0% year-on-year), according to a second release published by Romania’s Statistical Institute on 10 October. The deteriorating external backdrop and weaker private consumption led the deceleration.

Domestic demand lost stride compared to Q1. Household spending decelerated to a revised 5.1% year-on-year in Q2 (previously reported: +5.3% yoy) from Q1’s 7.0%, despite tighter labor market dynamics, as rising inflationary pressures in the quarter weighed on consumer demand. On the other hand, government spending was upwardly revised to 9.0% (previously reported: +1.6% yoy; Q1: +0.1% yoy). Fixed investment, meanwhile, grew a revised 18.9% in Q2 (previously reported: +18.0% yoy) on what appeared to be the improved absorption of EU-linked structural funds.

On the external front, export growth decelerated to a revised 3.3% year-on-year (previously reported: +0.5% yoy; Q1: +3.6% yoy) on shakier demand from the Eurozone. Import growth, on the other hand, came in at an upwardly revised 5.2% in Q2 (previously reported: +3.6%; Q1: +10.2% yoy), supported by strong domestic demand. Taken together, net exports continued to subtract from overall growth.

On a seasonally-adjusted basis, output grew 1.0% quarter-on-quarter (Q1: +1.2% quarter-on-quarter s.a.).

Growth is expected to remain healthy as a tight labor market fuels consumption, and thanks to improved private-sector and EU-led investment. That said, slowing exports against a backdrop of subdued external demand will restrain momentum. The precarious fiscal position is a key risk to prospects ahead.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen