Romania: Economy contracts less than initially reported in Q3
January 8, 2013
In the third quarter, GDP contracted a revised 0.5% over the same period the previous year, according to data published on 8 January. The print came in slightly above the 0.6% drop estimate released on 6 December and contrasted the 1.1% expansion recorded in the second quarter.
The slight improvement came on the back of upward revisions to private consumption and investment. Private consumption fell a revised 1.3% over the same period the previous year (previously reported: -1.4% year-on-year), while government expenditure rose 1.7%. On the other hand, gross fixed investment decelerated but remained strong, expanding a revised 11.7% (previously reported: +9.9% yoy).
Meanwhile, the external sector's net contribution to overall economic growth remains negative, as the Eurozone crisis dampens demand for Romania's exports. Exports of goods and services contracted 5.2% in the third quarter (Q2 2012: -0.5% yoy), while imports fell a softer 2.3% (Q2: +0.2% yoy).
A quarter-on-quarter comparison corroborates the contraction suggested by the annual figures. GDP fell a revised 0.4% in seasonally adjusted terms in the third quarter (previously reported: -0.5% qoq), which contrasted the 0.2% increase recorded in Q2.