Industry becomes main driver for Romania’s economic growth

Industry had the highest contribution to Romania’s 5.7% annual economic growth in the first quarter of this year, surpassing the trade sector. The IT and communications sector also increased its contribution. Industry brought 1.5 percentage points of the economic growth in the first quarter, according to new estimates released by the National Statistics Institute (INS) on Wednesday, June 7. The sector, which has the highest weight in Romania’s gross domestic product (GDP), namely 23.1%, saw a 6.7% increase in the activity volume compared to the first three months of 2016. Trade, which is the second-biggest sector in the local economy, with a share of 19.5%, also saw a 7.3% increase in the first quarter and contributed 1.4 percentage points to the GDP increase. The IT and communications sector brought 0.9 percentage points of the economic growth. This sector only stands for 6.2% of the local GDP, but saw a 15.3% increase in the activity volume. The fourth-biggest contributor was the professional, scientific and technical activities, administration services, and support services, which brought 0.5 percentage points of the economic growth. This sector, which includes outsourcing activities, also represents 6.2% of the local GDP and saw a volume increase of 9.1% in the first quarter. Real estate transactions and the public administration sector also contributed 0.3 percentage points each to the economic growth, while construction, agriculture, and the financial sector had no contribution. On the expenses side, the household consumption generated 4.8 percentage points of the GDP growth. Romania’s economy unexpectedly accelerates in first quarter editor@romania-insider.com