Romania: Economy strengthens in the second quarter
September 6, 2012
In the second quarter, GDP rose 1.2% over the same period last year, according to revised data published on 6 September. The print confirmed the flash estimate released on 14 August and came in significantly above the 0.3% expansion recorded in the first quarter. The acceleration over the previous quarter was driven by stronger growth in both the domestic and the external sector. Private consumption rose 1.6% over the same period last year (Q1: +0.6% year-on-year), and gross fixed investment remained robust, expanding 15.2% (Q1: +12.2% yoy). On the other hand government expenditure fell 1.2% (Q1: -1.4% yoy). In addition, the external sector's net contribution to overall economic growth improved from minus 1.4 percentage points in Q1 to plus 0.2 percentage points in Q2, as exports outpaced imports. That said, exports of goods and services expanded a meagre 0.7% in the second quarter (Q1: -2.2% yoy), while imports added an even softer 0.2% (Q1: -0.3% yoy). A quarter-on-quarter comparison corroborates the acceleration suggested by the annual figures. GDP expanded 0.5% in seasonally adjusted terms in the second quarter, up from the revised 0.1% increase recorded in the first quarter of the year (previously reported: -0.1% qoq).
Author: Ricardo Aceves, Senior Economist