Household consumption, investments contribute most to economic growth in 2019

Household consumption and investments had the most important contributions to the economy's growth last year, while export had a negative contribution, according to data published on Tuesday by the National Institute of Statistics (INS).

In 2019, the gross domestic product increased by 4.1 pct compared to 2018, and the value of GDP in current prices was about 1,054 billion lei.

"From the point of view of the use of GDP, the growth was mainly due to: the end-consumption expenses of households, whose volume increased by 5.9 pct, contributing by 3.7 pct to the GDP growth; gross fixed capital formation, whose volume increased by 17.8 pct, contributing by 3.7 pct to GDP growth. Negative contribution to GDP growth had the net export (-1.7 pct), a consequence of the 3.5 pct growth in volume exports of goods and services, correlated with a greater increase in the volume of imports of goods and services, by 7.2 pct," says INS.

Almost all branches of the economy contributed to GDP growth in 2019, compared to 2018, with more significant positive contributions: construction (+0.9 pct), with a share of 6.4 pct in GDP formation and whose volume of activity increased by 16.8 pct; wholesale and retail trade; repair of motor vehicles and motorcycles; transport and storage; hotels and restaurants (+0.9 pct), with a share of 18.2 pct in GDP formation and whose volume of activity increased by 4.8 pct; net taxes per product (+0.9 pct), with a share of 9.3 pct in the formation of GDP and whose volume of activity increased by 9.5 pct.

The industry had a negative contribution to the GDP growth (-0.3 pct) as a result of reducing its volume of activity by 1.5 pct, according to INS.

According to the winter economic forecasts, published in February by the European Commission, Romania recorded an economic growth of 3.9 pct in 2019, compared to 4.4 pct in 2018. AGERPRES