Household consumption - most important contribution to Romanian economy's Q1 growth

Household consumption had the most important contribution to the growth of the Romanian economy in the first quarter of this year, compared with the same period last year, while exports had a negative contribution due to higher imports, according to data released on Thursday by the National Institute of Statistics (INS). 

In the report published following the consultations in March, in Bucharest, with the Romanian authorities, the experts of the International Monetary Fund drew attention that fiscal relaxation aimed at stimulating consumption at a time when the economy was growing strongly could aggravate the overheating. 

According to the INS data, the Gross Domestic Product (GDP) in the first quarter of this year remained at the same level, in real terms, as the one recorded in the previous quarter, while as compared to the same quarter of 2017, the Romanian economy rose by 4pct in unadjusted terms and 4.2pct by in seasonally adjusted terms. 

Almost all sectors of the economy contributed to the GDP growth in the first quarter of 2018 as compared to the first quarter of 2017, with the most positive contributions coming from the industry (+ 1pct), with a share of 23pct in the GDP formation, which recorded an increase in the business volume by 4.4pct, wholesale and retail trade, repair of motor vehicles and motorcycles; transport and storage; hotels and restaurants (+ 0.8pct), with a 20pct share in the GDP formation and a business volume which increased by 4.1pct. 

In seasonally adjusted terms, the estimated GDP for the first quarter of 2018 was 222.726 billion lei in current prices and in unadjusted terms it stood at 176.707 billion lei. 

The National Prognosis Commission indicates a GDP growth of 6.1pct in 2018, followed by increases of 5.7pct in 2019 and 2020 and 5pct in 2021. 

In 2017, Romania's economy recorded an advance of 6.9pct compared to the previous year, in 2016 it rose by 4.8pct, the highest rate since 2008, and in 2015 by 3.9pct.