Romania: The economy gathers momentum in Q3
November 14, 2018
According to a preliminary estimate released by the National Institute of Statistics on 14 November, the economy expanded 4.3% in the third quarter over the same period last year, gradually accelerating from the second quarter (Q2: +4.1% year-on-year).
Although a breakdown by components is not yet available, tightening labor market conditions and some moderation in inflation suggest household spending expanded at a healthy pace in the quarter. Moreover, even if absorption of EU funds remains sluggish, fixed investment is expected to have rebounded notably following a sharp contraction in Q2. On a less positive note, the external sector appears to have weighed on growth in Q3, due to a cooling EU economy, especially in Germany and Italy—the country’s main trading partners.
On a quarter-on-quarter seasonally-adjusted basis, GDP growth accelerated at the fastest rate in a year (Q3: +1.9% quarter-on-quarter; Q2: +1.5% qoq). The Statistical Office (INSSE) will release more detailed data on 7 December.