Romania's statistics office confirms 2.4% GDP growth for Q1

Romania’s statistics office revised marginally (-0.1%) the nominal value of the GDP for the first quarter of the year (Q1) but maintained the estimated real annual growth rate at 2.4%.

It was the slowest growth rate in nearly six years, nonetheless pretty robust compared to the readings expected for the coming quarters.

Romania’s GDP thus increased to RON 272 billion (EUR 56.7 bln) in the quarter, while the rolling four-quarter figure reached RON 1,073 bln (EUR 225.5 bln), up 3.5% in real terms compared to the previous four-quarter period. The trend annual growth rate thus eased to 3.5% from 4.1% calculated at the end of 2019 and will see a deep plunge in Q2.

The revised Q1 GDP data, published July 7, shows only marginal corrections compared to the initial data published on June 9, except for the variation of inventory, investments (gross fox capital formation), and the foreign trade data. Namely, the net imports initially estimated at 5.6% of GDP were revised to 4.6% of GDP. It remains, however, the widest trade deficit since 2013.

The accumulation of inventory, on the contrary, was not as significant as initially estimated: only 0.4% of GDP, compared to 3.4% under previous data. The gross fixed capital formation increased by 13.1% year-on-year compared to 5.9% initially estimated.

(Photo source: Natanael Alfredo/Dreamstime.com)