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February 1, 2023

INS: Romanian economy up 0.3 pc in Q2

Industry went up by 5.9 pc, compensating for faster decline in constructions.

Data of the National Statistical Institute (INS) confirm estimates published a few weeks ago. According to a release, the economy grew by 0.3 per cent in Q2 compared to Q1 of the year. On the other hand, economy was unable to recuperate enough on a year-on-year basis, reregistering a minus of 0.5 per cent. In fact, Romania has been in recession since Q3 of 2008, when the GDP started going down. In Q2 this year, the economy gained some strength, mainly thanks to export. Romania-made cars and telephones sold well, therefore the entire sector grew by over 20 per cent in H1 this year compared to H1 of last year.

According to INS, in Q2 of 2010, the industry grew by 5.9 per cent and compensated for the 8.3 per cent decrease suffered by the construction sector. Compared to Q2 of 2009, slight volume growth was also reported in Agriculture, hunting and forestry, fishing and fisheries (+0.7 per cent) and in financial activities, real estate activities, rentals and services for companies (+0.8 per cent). At the other end, activity volumes dropped in retail, automobile and home appliance repairs, hotels and restaurants, transport and telecom (-4.2 per cent) and in other activities and services (-2.7 per cent). One consequence of the negative evolution of the whole of the economy is that the volume of per-product net taxes collected by the state budget dropped by 2.7 per cent, the press release states. The seasonally adjusted construction volume dropped by only 0.1 per cent and the industry reported growth by 4.2 per cent. From the point of view of the GDP use, domestic demand went up by 1.9 per cent on a year-on-year basis, thanks to growing stock volumes in the economy. The total final consumption decreased by 0.7 per cent both because of the 0.4 per cent decrease of household expenditures on final consumption and of the 2 per cent smaller expenditures with final consumption by public administrations. The GDP decrease in real terms in H1 was by 1.5 per cent compared to H1 of 2009, and was notably determined by the reduction of the volume of activity, therefore of the gross value added in constructions (-12 per cent) and services (-2.2 per cent), whose contribution to the GDP was of 58.3 per cent (7 per cent the construction sector and 51.3 per cent the services).

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