Romania confirms 4.1% GDP growth in Q2

Romania confirms 4.1% GDP growth in Q2
By bne IntelliNews October 11, 2018

Romania’s statistics office confirmed Q2 GDP growth at 4.1% y/y in its second preliminary estimate, with a marginal revision of the elements of the GDP formation and utilisation.

Romania’s GDP increased by 4.1% y/y in comparable prices in Q2, the statistics office confirmed on September 7 in the first detailed data released after the August 14 flash report. Rising private consumption has driven up the consumption of services, but growth was robust in industry as well on the GDP formation side.

Industry’s contribution to the formation of value added was revised from 1.0pp  to 1.1pp on the formation side (following a 4.4% rise in volume terms, compared to 4.2% y/y in the first estimate) while the contribution of the net taxes was revised downward accordingly. On the utilisation side, the private consumption (household expenditure on consumption) was revised downward to a contribution of 3.1pp (following same 5.1% y/y rise in volume terms but steeper rise in prices) from 3.2pp under the first estimate.

Romania’s GDP will expand 4% this year, according to the International Monetary Fund’s (IMF's) latest World Economic Outlook report, issued on October 9. The fund thus revised downwards the forecast from the 5.1% projection made in the April report.

In July, Romania’s state forecasting body the CNP also cut its projection for this year’s GDP growth. However, its 5.5% forecast is still far more optimistic than that of the IMF. In the second quarter of the year, Romania’s GDP expanded 4.1% y/y, after growing 4% in the first quarter.

Data

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