Romania's statistics office INS revised the GDP contraction in Q3 to 5.7% from 6.0% under the first estimate. The GDP decline in the first nine months was adjusted accordingly to 5% from 5.1% previously.

The INS also reviewed the GDP deflator for Q3, which reflects the dynamics of the prices throughout the economy compared to the same period of 2019. The indicator's updated value is 4.1% from 2.2% previously.

As a result, the INS now estimates the nominal GDP in Q3 2020 at RON 285.2 billion (EUR 58.6 bln), 2.2% more than the value announced initially.

The nominal GDP for January-September was also revised upwards by over RON 6 bln (EUR 1.23 bln), to RON 724 bln (EUR 149 bln). The nominal GDP is used for calculating ratios such as the budget deficit to GDP, public debt to GDP, and current account to GDP, which are essential in evaluating macroeconomic imbalances.

On the GDP formation side, the new data show a steeper decline in trade and HoReCa (-4.5% year-on-year, compared to -4.2% previously).

On the GDP utilization side, the increase in gross fixed capital formation was revised downward from +4.2% year-on-year to +2.9%.

iulian@romania-insider.com

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