The government has managed to keep economic growth statistics “in the smallest possible fluctuation band,” Prime Minister Nicolae Ciuca said on Friday, adding that maintaining the flat tax rate, encouraging investment and the business community are “vital” to keeping this positive trend.
“Romania’s economy is growing, according to the National Institute of Statistics. The first quarter of the year witnessed a growth of 6.4%, compared to the same period last year and 5.1% compared to the previous quarter. We managed to keep economic growth statistics in the smallest possible fluctuation band. The annualised value is one percentage point higher than the 5.4% increase in the Eurozone, the place of the best performing economies in the European Union,” Ciuca wrote on Facebook.
According to the prime minister, “data are good, considering the global economic context.”
“The first quarter of the year was still affected by the pandemic, and the war in Ukraine began on February 24. It is the only time period that includes both crises that hit the world economy hard and created major imbalances in all countries of the world. The Romanian economy has managed to perform well and it is obvious that preserving the flat tax rate, encouraging investment and the business community are vital to keeping this positive trend going.”
INS: Romania’s economy advances 5.1 pct three months into 2022
The National Institute of Statistics (INS) has revised to 5.1% the increase in Romania’s Q1 2022 Gross Domestic Product (GDP) on a quarterly basis, and to 6.4%, y-o-y, according to its latest provisional data.
Thus, the seasonally adjusted Q1 2022 GDP was 343.678 billion lei current prices, up in real terms by 5.1% on a quarterly basis and 6.4% y-o-y.
In unadjusted terms, Q1 2022 GDP was 273.829 billion lei current prices, up in real terms 6.4% y-o-y.
Compared with the previous provisional data, the GDP decreased by 0.1 percentage points, and the gross added value decreased by 0.6 percentage points.
The volume of gross added value by branches of activity recorded more important changes between the two estimates, as follows: information and communications had an increase in the volume of activity of 0.3 percentage points; professional, scientific and technical activities; administrative service activities and support service activities, had an increase in volume by +0.1 percentage points; wholesale and retail trade; repair of motor vehicles and motorcycles; transport and storage; hotels and restaurants, had a decrease in volume by 3.0 percentage points.
Arts, entertainment and recreation; repairs of household products and other services had an increase in volume of 0.4 percentage points. Construction witnessed a decrease in volume by 0.3 percentage points. Net taxes on products increased by 4.3 percentage points.
In terms of the use of GDP, significant differences were visible between the two estimates regarding costs of individual and collective final consumption of the public administrations, from + 1.5% to + 0.8%, on a decrease in volume from 107.7% to 103.9%; costs of final consumption of the households, from + 4.4% to + 4.6%, as a result of an increase in volume from 107.0% to 107.2%.
The INS says that the seasonally adjusted series of the quarterly GDP has not changed, as the revision of the estimates for the first quarter of 2022 compared to the provisional version published on June 8, 2022, are insignificant. Seasonally adjusted series are recalculated quarterly in accordance with the EU practice.