Romania’s retail trade turnover went up by 7% in 2014 compared to 2013, which shows a significant increase in domestic demand. The indicator doesn’t include the sales in the local car market.

Non-food retail turnover had the highest surge, of 10.6%, while retail sales of food, beverages and tobacco went up by 7.5% over the previous year. The fuel sales remained almost flat, according to data released by Romania’s National Statistics Institute (INS), on Tuesday, February 3.

“On the medium term (2015-2017) we forecast an increase in private consumption of about 3.5% to 4% per year,” Banca Transilvania’s analysts wrote in a note to investors. “This will be supported by several factors: the revival of productive investments, the increase in revenues due to higher minimum wages, and faster growth in lending in local currency due to record low interest rates.”

In December, the retail trade turnover went up by 0.3% (in seasonally adjusted terms) compared to November, growing for the fourth month in a row. This was mainly due to higher fuel sales (+2.9%) determined by a drop in fuel prices.

Compared to December 2013, the retail sales increased by 6.5%, supported by non-food and food retail.

editor@romania-insider.com