The National Statistics Institute (INS) revised Romania’s 2014 economic growth estimate downwards to 2.8 percent from the 2.9 percent announced in March; in this context, industry and communications further make the most important contributions to the Gross Domestic Product (GDP), shows the provisional data released on Tuesday by the INS.
Conversely, the INS revised upwards its estimate of the GDP growth for Q4 2014 to 0.7 percent from Q3, as to the initial 0.5 percent. Compared to Q4 2013, data for the last quarter of 2014 looks better than estimated a month ago, showing an increase by 2.7 percent as raw series, and by 2.6 percent as seasonally adjusted series, with both parameters having advanced 0.1 percent from the data announced in early March.
Expressed as seasonally adjusted series, the GDP estimate for Q4 2014 was 168.181 billion lei, at current prices. At the same time, the full-year GDP for 2014 is estimated at 666.637 billion lei at current prices.
The most important contributions to GDP growth in 2014 compared with the previous year were by industry (+ 0.9 percent), which accounted for 24 percent of the GDP formation and scored a 2 percent volume increase; as well as by information and communications (+ 0.4 percent), accounting for 5.9 percent of GDP and with a 7.7 percent rise in the activity volume.
The net taxes on products also had a positive contribution to GDP growth (+ 0.5 percent), and posting a share of 11.6 percent to the GDP formation; there was a 1.7 percent increase in the volume of this parameter.
The 2.3 percent decline in the volume of financial intermediation and insurance had a negative impact of – 0.1 percent on GDP growth.
In terms of GDP spending, the most important contributions in 2014 were by the household final consumption (+ 2.6 percent), which accounts for 69.3 percent of GDP spending; and the final consumption of public administrations (+ 1 percent), which accounts for 7.6 percent of GDP spending.
The volume of the gross fixed capital formation increased slightly by 1.4 percent according to the revised data, but despite this, its contribution to economic growth stays 0.8 percent in the negative.