Romania: Economic growth accelerates in Q1
June 5, 2015
In the first quarter, the economy expanded 4.3% over the same period of the previous year, according to more detailed data released on 6 June. The figure met the preliminary estimate and marked an acceleration compared to the 2.7% expansion observed in the fourth quarter. On a quarter-on-quarter basis, GDP rose 1.6% in seasonally-adjusted terms in Q1, which was up from the 1.0% expansion tallied in the previous quarter.
Q1’s result reflected an acceleration both in domestic demand and exports. Private consumption grew 4.9% in the first quarter, which was stronger than the 4.2% increase observed in Q4. Growth in fixed investment surged from a 1.4% rise in Q4 to an 8.0% expansion in Q1. Conversely, government spending tumbled from a 17.2% increase in Q4 to a 0.6% decline in Q1.
On the external side of the economy, exports jumped from a 3.7% increase in Q4 to a 9.7% expansion. Imports rose an even greater 12.6% in the first quarter of the year, which was more than double the 5.9% increase recorded in Q4. Because imports accelerated faster than exports, the external sector’s net contribution to overall economic growth decreased from minus 2.2 percentage points in Q4 to minus 4.7 percentage points in Q1.
Author: Dirina Mançellari, Senior Economist