Romania’s revised Q1 GDP shows slower consumption growth

Romania’s revised Q1 GDP data confirm the slow (+0.3% y/y) annual growth and the stagnation (+0.0% q/q) of the seasonally adjusted data but brings two adjustments that correlate between themselves: services to households (including trade) contracted by 1% y/y compared to a marginal (+0.1% y/y) increase estimated initially and the households actual individual consumption increased by only 0.9% y/y compared to +2.3% estimated initially.

The dynamics of the other sectors, except for services to households, were confirmed: industry contracted by 3.0% year-over-year (y/y), while construction surged by 9.9% y/y. The key IT sector posted a modest 0.9% y/y advance along with the slowdown undergone by the industry globally.

Overall, the gross value added generated in Q1 contracted by 0.3% y/y (-0.1% estimated initially) while the net taxes and subsidies rose by 7.2% y/y (+3.5% y/y initially).

Foreign trade data was revised, and as a result, the net imports accounted for only 6.2% of domestic demand for consumption and investments (in line with the long-term trend), compared to the record 7.5% figure initially estimated.

The quarter’s nominal GDP was revised upwards by 2.7% y/y to RON 375.8 billion, which is likely to sweeten the deficit ratios as a result.

Revised Q1 data confirms Romania’s GDP continued its five-quarter quasi-stagnation in Q1.

Romania’s GDP increased by an average of 0.1 q/q over the five quarters to Q1 2025, when it posted a meagre 0.3% y/y advance and quarterly standstill (+0% q/q), according to data initially published by the statistics office on June 6 and confirmed on July 10.

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