Romania: Detailed data confirms Q3 GDP contraction
December 6, 2012
In the third quarter, GDP contracted 0.6% over the same period the previous year, according to revised data published on 6 December. The print confirmed the flash estimate released on 15 November and contrasted the 1.1% expansion recorded in the second quarter. The contraction in the third quarter was driven by a sharp deterioration in domestic demand and a depressed external sector.
Private consumption fell 1.4% over the same period the previous year (Q2: +2.1% year-on-year), while government expenditure dropped 1.7% (Q2: -4.0% yoy). On the other hand, gross fixed investment decelerated but remained strong, expanding 9.9% (Q2: +15.5% yoy). In addition, the external sector's net contribution to overall economic remains negative, as the Eurozone crisis dampens demand for Romania's exports.
Exports of goods and services contracted 4.2% in the third quarter (Q2: -0.5% yoy), while imports fell a softer 1.9% (Q2: +0.2% yoy). A quarter-on-quarter comparison corroborates the contraction suggested by the annual figures. GDP fell 0.5% in seasonally adjusted terms in the third quarter, which contrasted the 0.1% increase recorded in Q2.