Romania: GDP growth accelerates to almost eight-year high in Q2
September 6, 2016
In second quarter of 2016, the economy expanded 6.0% over the same period of the previous year, the fastest rate of growth since Q3 2008, according to detailed data released on 6 September. The figure marked an acceleration compared to the 4.3% expansion observed in the first quarter and was in line with the preliminary estimate. On a quarter-on-quarter basis, GDP rose 1.5% in seasonally-adjusted terms in Q2, which mirrored the expansion seen in Q1.
Private consumption grew 11.2% in the second quarter, which was stronger than the 10.0% increase observed in the first and marked the largest expansion since Q3 2008. Growth in fixed investment jumped 10.6% in Q2, after registering an already robust 7.0% rise in Q1. In contrast, government spending moderated from Q1’s 2.8% increase to a 1.9% rise in Q2.
On the external side of the economy, exports rose 3.5% in Q2, up from 1.2% in Q1. Imports rose 11.0% in Q2, up from 8.0% in Q1. As a result, the external sector’s net contribution to overall economic growth worsened from minus 7.5 percentage points in Q1 to minus 9.6 percentage points in Q2.
Author: Christopher Mc Innes, Economist