GDP growth for the first 3 months amounted to +0.1% (quarter-on-quarter), which corresponds to an annual increase of +2.3%. This figure was lower than the average of the Bloomberg survey, confirming a rather sudden slowdown in the Romanian economy. Growth actually halved in the first quarter (2.3% compared to 4.5% in the first quarter of last year).
BCR estimates growth of 2.1% this year, while BRD expects economic growth of 2.6% this year and 3.4% in 2024.
The European Commission also revised upwards its GDP growth estimate for Romania to 3.2% in 2023 and 3.5% in 2024 (against 2.5% and 3.0% in previous estimates). The EC notes that “planned investments under the Recovery and Resilience Plan (RRP) and receipts of other EU funds are aimed at offsetting the impact of tight credit conditions.”
The following industries contributed to GDP growth in the first quarter of 2023 compared to the first quarter of 2022:
- Trade, activity in the sphere of services, transport, hotel and restaurant industry (+0.9%), with a weight of 22.0% in the formation of GDP and which registered an increase in the volume of activity by 4.5%;
- Information and communication (+0.5%), with a weight of 8.2% in the formation of GDP and recording an increase in the volume of activity by 5.6%;
- Professional, scientific and technical activities; provision of administrative services and provision of auxiliary services (+0.5%) with a weight of 5.4% in the formation of GDP, which recorded an increase in the volume of activity by 10.0%;
- Construction (+0.3%) with a weight of 3.7% in the formation of GDP, which recorded an increase in the volume of activity by 8.5%.
The negative contribution to GDP growth was made by industry (-0.5%) with a weight of 23.6% in the formation of GDP and which recorded a decrease in the volume of activity by 2.3%.
By categories of use, an important positive contribution was made by:
- household final consumption expenditures, the volume of which increased by 6.4%, contributing to GDP growth of +4.2%;
- expenditure on individual final consumption of state administration, the volume of which increased by 3.7%, contributing to GDP growth +0.3%;
- expenditure on collective final consumption of public administration, the volume of which increased by 3.9%, contributing to GDP growth of +0.4%.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.