Romania: Economy back in recession in the first quarter
June 6, 2012
In the first quarter, GDP rose 0.3% over the same period last year, according to revised data published on 6 June. The print confirmed the flash estimate released on 15 May but came in significantly below the 1.9% expansion recorded in the fourth quarter. The quarterly reading marked the slowest expansion since the first quarter of 2011, when the economy expanded for the first time after two consecutive years of quarterly contractions. The deceleration over the previous quarter was driven by slower growth in the domestic sector. Private consumption rose 0.6% over the same period the previous year (Q4: +2.8% year-on-year), while government expenditure fell 3.8% (Q4: -3.2% yoy). On the other hand, gross fixed investment remained strong, expanding 11.8% (Q4: +10.3% yoy). Despite a small improvement, the external sector remained a drag to economic growth, as exports of goods and services contracted 2.9% in the first quarter (Q4: +4.0% yoy), while imports fell 1.2% (Q4: +5.4% yoy).