Romania: Economy improves in Q3
December 3, 2014
In the third quarter, the economy expanded 3.2% over the same period last year, according to more detailed data released on 3 December. The figure met the preliminary estimate and marked an improvement over the 1.4% expansion observed in the second quarter.
Q3’s result came on the back of an improvement in the contribution from the external sector, while domestic demand performed worse compared to the previous quarter. Private consumption grew 4.1% in the third quarter, which met the increase observed in the second quarter. However, government spending decelerated from a 20.8% increase in Q2 to a meager 0.7% rise in Q3. Conversely, fixed investment contracted 3.5% in Q3, which was a slower decrease compared to the 12.3% fall observed in Q2.
On the external side of the economy, exports decelerated from a 7.3% rise in Q2 to a 2.5% increase in Q3. In addition, imports rose only 0.4% in the third quarter (Q2: +4.8% year-on-year). As a result, exports and imports recorded the slowest growth rates in seven quarters. The external sector’s net contribution to overall economic growth improved from a flat reading in the second quarter to plus 1.1 percentage points in Q3.
On a quarter-on-quarter basis, GDP rose 1.8% in seasonally-adjusted terms in Q3, which was slightly down from the 1.9% estimated in the preliminary release, but marked an improvement over the 0.4% contraction observed in the second quarter.
Author: Dirina Mançellari, Senior Economist