Romania: GDP growth dips in Q3
December 6, 2016
The Romanian economy continued to grow robustly in Q3, but proved not to be immune to the slowdown felt across Central and Eastern Europe over the period. According to the National Institute of Statistics, the economy expanded 4.4% in Q3 over the same period of the previous year, down from the 6.0% growth recorded in Q2 and matching the Institute’s preliminary estimate. On a quarter-on-quarter basis GDP rose 0.6% in Q3 in seasonally-adjusted terms, below the 1.5% growth in Q2. Romania has been one of the region’s star performers in recent years, with strong growth underpinned by solid domestic demand.
Private consumption grew 6.7% in the third quarter, which was below the 10.8% expansion in Q2 and marked the slowest growth in a year. Growth in fixed investment in Q3 also dipped to 2.8% from 10.7% in Q2, while government consumption growth declined from 9.8% in Q2 to 0.3% in Q3.
On the external side of the economy, exports rose 6.7% in Q3, down from 8.5% in Q2, while imports rose 6.8%, down from 13.9%. As a result, the external sector’s net contribution to overall economic growth improved markedly from minus 9.7 percentage points in Q2 to minus 2.4 percentage points in Q3.
Author: Oliver Reynolds, Economist