Romania: Economic activity decelerates in Q4; GDP moderates in full year 2014
March 6, 2015
In the fourth quarter of last year, the economy expanded 2.6% over the same period of the previous year, according to more detailed data released on 6 March. The figure met the preliminary estimate and marked a deceleration compared to the 3.3% expansion observed in the third quarter. On a quarter-on-quarter basis, GDP rose 0.5% in seasonally-adjusted terms in Q4, which was notably down from the 2.2% expansion tallied in the previous quarter
Q4’s result reflected a deceleration both in domestic demand and exports. Private consumption grew 4.3% in the fourth quarter, which marked a slowdown compared to the 4.6% increase observed in Q3. Growth in government spending decreased from 6.5% in Q3 to 3.5% in Q4. Conversely, fixed investment swung from a 2.6% contraction to a 1.4% rise.
On the external side of the economy, exports decelerated from an 8.1% rise in Q3 to a 3.7% increase in Q4. Imports rose 5.9% in the final quarter of the year, which was down from the 7.1% increase recorded in Q3. Since exports decelerated faster than imports, the external sector’s net contribution to overall economic growth decreased from minus 1.4 percentage points in Q3 to minus 2.2 percentage points in Q4.
In the full year 2014, the economy expanded 2.9%, which was down from the 3.4% rise tallied in 2013.
Author: Dirina Mançellari, Senior Economist