Romania’s first-quarter GDP rose 2.2% y/y, the statistics office said this week, confirming its first estimate of the growth released on June 5.

While the nominal GDP was adjusted downwards by some 0.45% from the first estimate to RON 120.9bn [EUR 27.56bn], the real annual growth rate was maintained at 2.2%. The seasonally-adjusted quarterly growth rate was also kept at 0.7%.

The growth was backed by net exports, which are estimated to have had bigger significance than it was shown under the June 5 estimate. Net exports contributed 4.4pps [upward-adjusted from 3.0pps under the first estimate] to the quarter’s 2.2% GDP growth. 

On the opposite, the negative contribution of gross fixed capital formation was adjusted to minus 1.0pps [from minus 0.1pps] and the negative contribution of variation of stocks was also adjusted from minus 0.5pps to minus 1.0pps.

Actual final consumption contributed a minus 0.2pps under both estimates. Exports’ performance was not surprising but the domestic demand’s weakening is slightly disappointing.

On the formation side, industry contributed a major 0.7pps to the 2.2% y/y GDP advance. The value added generated by industry expanded by 2.6% - still below the 4.7% increase in the sector’s gross output.

The wholesale and retail trade, car repairs, hotels and restaurants also contributed 0.4pps to the overall GDP growth, as their combined value added increased by 3.2% y/y. The sector of support, professional and administrative services advanced by 6.8% y/y, contributing another 0.4pps to the GDP expansion.