Mortgage sales, however, continued to decline in the overheating economy, but at the lower pace of 12% y/y compared to 36% y/y in April.
Romania's advance far outstripped the 14.6% average increase in the EU28 area, Eurostat data shows.
Expansion of 10.06% measured in April trailed the annual CPI rate of 10.85%.
Fall in debt in local currency terms came despite significant government deficit in Q1, indicating a certain depletion of the government’s buffer.
Amid the country's currency collapse, it reached the highest level recorded since March 2015.
Rate of growth edges ahead of March's 7.7%.
Slovenia is the only East European country among the top 10 in terms of gains to GDP per capita due to globalisation, a study from German foundation Bertelsmann finds.
Across January-May, it expanded by 78% y/y to TRY20.5bn.
Good news for the ruling party ahead of this week's elections but the figures do not cover the period that saw the start of the ongoing economic slowdown in Turkey.
However, Romania's convergence with EU averages remains slow, and the sharp growth of the labour cost in Romania announced by Eurostat was offset by the highest inflation in Europe.
The volume of construction works in Romania contracted by 4.1% y/y in April after the average 2.2% y/y decline in Q1.
Economy has expanded by 4.0% p.a. since 2010, but this remains below the rates needed for the country's convergence with the European Union.
The volume of NPLs accumulated by households increased by 13% y/y as of end-March, becoming the main threat to Romania’s financial stability, a central bank report said.
Short-term loans jump 7% m/m as of the end of the fourth month.
The expansion has now lasted 19 consecutive months, but the growth deceleration has persisted for the past four months.
Eurostat figures confirm Romania is following the same path as its northern neighbours in CEE, whose labour markets have tightened dramatically.
Passenger numbers at Georgian airports soared by 30.5% and there were more modest hikes in Ukraine, Macedonia and Montenegro, ACI Europe study shows.
The surge in consumer prices fuels expectations of a more hawkish central bank stance in the coming months.
Tourism contributed 18.8% of Croatia's GDP in 2016 and that ratio is expected to soar this year after investments in new terminals at the country's main airports, found a report from consultancy network UHY.
The long-term trend is towards wider trade deficits, and despite the narrowing in April on the back of a hike in exports, more is needed to return the trade gap to a more sustainable level.