Romania’s economy contracts 0.4% in second quarter

Romania's economy contracted by 0.4% in the second quarter of 2023, according to the National Statistics Board. This figure aligns with the initial flash estimate. The country's final consumption decreased by 2.4% compared to the same period in 2022. Despite this decline, the overall GDP remained unchanged in seasonally adjusted terms.

However, various sectors experienced significant changes. Final consumption fell by 1.0% on a quarterly basis. Meanwhile, gross fixed capital formation surged by 16.5% year-on-year and 12.7% quarter-on-quarter. Exports of goods and services increased by 1.4% annually and 0.6% quarterly. Conversely, imports of goods and services rose by 2.6% year-on-year and 1.6% quarter-on-quarter.

Within the sectors, agriculture grew by 5.5% year-on-year and 3.5% quarterly. Industry, on the other hand, saw a decline of 4.2% annually and 6.5% quarterly. Construction, surprisingly, expanded by 15.3% year-on-year and 8.7% quarter-on-quarter.