Romania’s economy grew by 2.8 per cent in 2014 compared to 2013, surpassing the 2.2 per cent growth level on which the budget was based and the European Commission’s 2.1 per cent forecast published in the autumn of 2013, a report published on the Finance Ministry’s website shows.
The development was based on the higher-than-expect growth in private consumption (4.5 per cent compared to initial forecasts of 1.6 per cent) and public consumption (5.3 per cent compared to initial forecasts of 1.7 per cent). On the other hand, an unpleasant surprise came from investment expenditures, which dropped 3.5 per cent year-on-year while the budget was based on a growth forecast of 4 per cent and the EC had forecast a growth of 3.5 per cent.
“This was determined by high uncertainties among investors, foreign investors in particular, as well as the government investments’ low contribution. It is worth noting that the drop in investments eased in Q3, and there was even a re-launch of growth in Q4,” the report reads.
Thus, in 2014 Romania registered the fourth-highest economic growth level in the EU.
When it comes to economic sectors, industry and constructions had a weaker-than-expected evolution. In industry however, the difference was moderate, the sector registering 0.8 per cent growth compared to a 0.9 per cent growth forecast. Constructions however stagnated in 2014, despite the fact that a growth of 0.5 per cent had been forecast. The agriculture sector’s growth exceeded expectations, standing at 0.1 per cent compared to a forecast of -0.2 per cent. The services sector grew by 1.3 per cent, compared to an estimate of 0.7 per cent, while net tax revenues grew by 0.5 per cent compared to the 0.2 per cent forecast on which the budget was based.