GDP in Romania
Romania - GDP (billions of Euros)
Second release confirms economic growth moderated in Q2
GDP grew 4.4% year-on-year in the second quarter (Q1: +5.0% year-on-year), according to a second release published by Romania’s Statistical Institute on 10 October. The deteriorating external backdrop and weaker private consumption led the deceleration.
Domestic demand lost stride compared to Q1. Household spending decelerated to a revised 5.1% year-on-year in Q2 (previously reported: +5.3% yoy) from Q1’s 7.0%, despite tighter labor market dynamics, as rising inflationary pressures in the quarter weighed on consumer demand. On the other hand, government spending was upwardly revised to 9.0% (previously reported: +1.6% yoy; Q1: +0.1% yoy). Fixed investment, meanwhile, grew a revised 18.9% in Q2 (previously reported: +18.0% yoy) on what appeared to be the improved absorption of EU-linked structural funds.
On the external front, export growth decelerated to a revised 3.3% year-on-year (previously reported: +0.5% yoy; Q1: +3.6% yoy) on shakier demand from the Eurozone. Import growth, on the other hand, came in at an upwardly revised 5.2% in Q2 (previously reported: +3.6%; Q1: +10.2% yoy), supported by strong domestic demand. Taken together, net exports continued to subtract from overall growth.
On a seasonally-adjusted basis, output grew 1.0% quarter-on-quarter (Q1: +1.2% quarter-on-quarter s.a.).
Growth is expected to remain healthy as a tight labor market fuels consumption, and thanks to improved private-sector and EU-led investment. That said, slowing exports against a backdrop of subdued external demand will restrain momentum. The precarious fiscal position is a key risk to prospects ahead.
FocusEconomics Consensus Forecast panelists see growth at 3.9% in 2019, which is up 0.2 percentage points from last month’s projection. For 2020, the panel sees growth at 3.0%, which is unchanged from last month’s projection, which is unchanged from last month’s projection.
Romania - GDP (EUR bn) Data
|GDP (EUR bn)||144||150||160||171||187|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||4.07||0.23 %||Sep 04|
|Exchange Rate||4.29||-0.34 %||Sep 04|
|Stock Market||9,262||-0.59 %||Sep 04|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
October 14, 2019
Industrial production fell 7.0% on an annual basis in August, following July’s 3.0% contraction and marking the worst result since June 2009.
October 11, 2019
Consumer prices rose 0.1% month-on-month in September, matching August’s result.
October 10, 2019
GDP grew 4.4% year-on-year in the second quarter (Q1: +5.0% year-on-year), according to a second release published by Romania’s Statistical Institute on 10 October.
October 3, 2019
On 3 October, the National Bank of Romania (NBR) kept the policy rate unchanged at 2.50%, while also leaving the deposit facility rate at 1.50%, the lending facility (Lombard) rate at 3.50% and maintaining the reserve requirements on both leu- and foreign currency-denominated liabilities.
September 12, 2019
Industrial output fell 3.0% on an annual basis in July, an improvement from June’s 6.2% contraction but marking the second fall in a row.