The INS maintains its prognosis of 1.6 percent economic growth in Q3 and 2.7 percent growth in the nine-month interval.
INS (the National Institute of Statistics) maintains its GDP prognosis announced in November, according to which the economy has experienced a 1.6 percent increase in the third quarter compared to the previous three months and a 4.1 percent increase compared to July-September 2012. The nine-month growth, therefore, is 2.7 percent, thanks largely to the industry and agriculture sectors.
On the one hand, according to seasonally adjusted data, the Gross Domestic Product estimate for the third quarter was RON 158.11 billion current prices, up by 1.6 percent in actual terms compared to the previous quarter and by 4.1 percent compared to the third quarter of 2012. At a nine-month interval, the GDP was RON 467.1 billion. On the other hand, according to raw data, the third quarter Gross Domestic Product estimate was RON 175.37 billion current prices, up by 4.1 percent in actual terms compared to Q3 of 2012, resulting in a 2.7 percent growth in nine months to RON 443.18 billion, Mediafax informs. “The most significant contributions to the GDP growth recorded between January 1 and September 30, 2013 were brought by the following branches: industry (+1.4 percent) with a 30.0 percent contribution to the GDP and a workload 5.1 percent higher, agriculture, forestry, and fishing (+1.0 percent) with a smaller contribution to the GDP (5.8 percent) and a 17.9 percent increase in workload, and real estate transactions (+0.2 percent) with a 7.8 percent contribution and a 2.2 percent increase in workload,” the INS press release shows.
The 0.7 percent decrease in workload reported in the sectors of public administration and defense, public social insurance, education, health, and social work has had a negative impact on the GDP’s upward trend, resulting in a -0.1 percent contribution. Regarding the use of GDP, in the first nine months, the growth was mainly due to net exports (+5.2 percent contribution) and the 14.4 percent increase in the export of goods and services, combined with a significantly smaller increase of 1.5 percent in the volume of imported goods, and a 0.4 percent increase in final household consumption with a 60.4 percent contribution to GDP and a workload 0.6 percent higher.
The following two areas recorded a negative contribution: gross fixed capital formation (-1.1 percent, 22.4 percent contribution to GDP, and 3.9 percent lower workload), and final consumption in public administration (-0.3 percent, 15.7 percent contribution, and 2.4 percent decrease in workload and 1.5 percent decrease in stock variation following a reduction of economy stocks). The estimate on economic growth will be updated on January 10.
According to a second prognosis issued Wednesday by the European Statistics Office (Eurostat), Romania experienced the largest economic growth in the European Union in the third quarter of 2013, both compared to the previous three months and the July-September 2012 interval, Agerpres reports.
Thanks to its 1.6 percent quarterly economic growth, Romania is top of the list within the EU, followed by Latvia (1.2 percent), Great Britain and Hungary (0.8 percent each), and Poland (0.6 percent).
Hourly costs up by 2 percent in third quarter
The value of labor force hourly costs adjusted to the number of workdays reported growth rate of 1.97 percent in the third quarter compared to the previous quarter and 4.18 percent compared to the same quarter last year. The raw value went up by 1.86 percent, and 3.81 percent respectively.
Relative to the third quarter, adjusted labor force hourly costs went up in most economic activities. The most significant increases occurred in the following sectors: education (11.4 percent), as a result of fewer work hours compared to the previous quarter because of the holiday, public administration (5.75 percent), and production and supply of electricity, heat, gas, hot water, and air conditioning (3.04 percent), the National Institute of Statistics press release shows. Adjusted labor force hourly costs dropped only in the area of financial intermediation and insurance (-5.42 percent), constructions (-0.66 percent), and trade (-0.17 percent).