Romania’s statistics office INS revised upward from 2.8% to 2.9% the quarterly growth rate for the GDP in the first quarter of the year (Q1) while leaving unchanged the annual growth rate at minus 0.2% - under the first revision of the detailed GDP data for the quarter.

The revision seems to reflect rather a revision of the seasonal pattern and is not wide in amplitude.

More importantly, the GDP deflator - a better proxy for the rise in the prices - was revised upward from 2.7% YoY to 3.3% YoY.

On the upside, the structure of the domestic demand was revised in favour of gross fix capital formation. Thus, while on June 8, the INS estimated that the final demand for consumption rose by 1.3% YoY (volume terms), now it estimates a 0.5% YoY contraction mainly following a downward revision in the public expenditures for consumption. Viceversa, the gross fix capital formation’s dynamics was revised from +9.9% YoY to +11.7% YoY.

On the downside, the exports’ annual performance (volume terms) was revised downward from +0.6% YoY to -0.2% YoY (volume terms). Imports were revised as well so that the balance remained constant - at the very high level of 7.2% of the total demand (for consumption and investments).

andrei@romania-insider.com

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