4.8%: Romania’s economy in the lead platoon of GDP growth in the first half of 2019

By Edwig Ban
With all the aversion that some economists and journalists show towards Romania, the country’s economic growth is one of the strongest in the EU.
It is worth noting that the dynamics of Romania’s GDP is based not only on domestic consumption (favored by increasing salaries and pensions), but also on investments, on the communications industry and on the scientific one.
The Gross Domestic Product of Romania increased by 4.8% in the first six months of the year, on the seasonally adjusted series, compared to the first semester of 2018, according to provisional data published by the National Institute on Friday. of Statistics (INS).
Compared to the first quarter of 2019, the GDP in the second quarter of 2019 was, in real terms, 1.0% higher, and compared to the same quarter of 2018 it registered an increase of 4.4% on the gross series and with 4 , 6% on the seasonally adjusted series.
On the seasonally adjusted series, the estimated GDP for the first semester of 2019 was 507.888 billion lei current prices, increasing – in real terms – by 4.8% compared to the first semester of 2018.
Almost all branches of the economy contributed to GDP growth in the first half of 2019 compared to the first half of 2018, with the following positive branches: wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, hotels and restaurants (+ 1.2%), with a share of 20.3% in GDP formation; constructions (+ 0.5%), with a weight of 3.5% in GDP formation; the volume of activity in construction increased by 14.9%; information and communications (+ 0.5%), with a share of 5.8% in GDP formation and whose volume of activity increased by 9.9%; professional, scientific and technical activities; administrative services activities and support services activities (+ 0.5%), with a share of 7.0% in GDP formation and whose activity volume increased by 7.7%.
From the point of view of the utilization of the GDP, the increase was mainly due to the expenses for the final consumption of the households, whose volume increased by 6.1%, contributing by 3.9% to the GDP growth; gross fixed capital formation, which contributed 2.3% to GDP growth, as a result of its volume increase by 12.4%.
“A negative contribution to GDP growth was net exports (-2.0%), a consequence of the 2.7% increase in exports of goods and services correlated with a higher increase in the volume of imports of goods and services, by 6.4% “, says INS.
Compared to Q1 2019, GDP in Q2 2019 was, in real terms, 1.0% higher. Gross Domestic Product – seasonally adjusted data – estimated for the second quarter of 2019 was 256.676 billion lei current prices, increasing – in real terms – by 1.0% compared to the first quarter of 2019 and by 4.6% compared to the second quarter of 2018.