Romania: Economy decelerates in the second quarter
September 6, 2011
In the second quarter, GDP rose 1.4% over the same period last year according to revised data from 6 September, which was in line with the flash estimate released on 16 August. The figure came in below the 1.7% expansion in the first quarter but marked the second consecutive quarter of positive growth following on eight quarters of recession. The second quarter expansion was mainly driven by the external sector, as domestic demand remains depressed. Private consumption dropped 0.7% over the same period last year (Q1: -1.7% yoy), and government expenditure fell 1.2% (Q1: -14.0% yoy). Meanwhile, gross fixed investment contracted 1.4%, compared to the 2.2% fall in the previous quarter. The contribution from the external sector to overall economic growth deteriorated somewhat, as exports of goods and services decelerated to a 6.3% expansion in the second quarter (Q1: +23.6% yoy), while imports grew 7.7% (Q1: +15.4% yoy). A quarter-on-quarter comparison corroborates the slowdown shown in annual figures, as GDP expanded 0.2% in seasonally adjusted terms in the second quarter, below the 0.5% expansion tallied in the first quarter.