Romania Revised 2009 GDP -7.1% On Year, Less Than Expected

03.03.2010 ZF English

Romania’s gross domestic product shrank by a less than expected 7.1% on the year in 2009, amounting to 491.2 billion lei (EUR119.5 billion), revised data from the statistics institute INS showed Wednesday.

In a flash estimate February 12, INS said the 2009 GDP had fallen by 7.2% on the year in real terms.

In 2008, Romania's GDP rose by a record 7.1%.

The yearly decline was broadly triggered by a 13.6% fall in constructions and a 11.2% decrease in retail and communications sector.

Final consumption was down 8.2% on the year in 2009, largely due to a 10.8% decline in household consumption.

The gross fixed capital formation fell 25.3% on the year.

Compared with the fourth quarter of 2008, revised data showed the economy declined by 6.5% in real terms during the last quarter of 2009, also a slight improvement compared with a 6.6% contraction estimated in February.

In the fourth quarter of 2009, the GDP fell by a seasonally adjusted 1.5% compared with a quarter earlier, amounting to RON122.3 million, INS said.

The GDP quarterly fall was driven mainly by declines in constructions, which were down 6.3% compared with the third quarter, and retail sector, which fell 3.4% on the quarter.

The services sector posted a 0.4% increase in the fourth quarter compared with the quarter before, INS data showed.

Final consumption rose 1.1% in the fourth quarter, mainly due to a 4.4% increase of final collective consumption in the public administration.

Investments in the Romanian economy fell significantly in the fourth quarter, as the gross fixed capital formation declined 24.5% from the quarter before.

The Romanian authorities estimate an economic growth of 1.3% in 2010, with the first positive signals expected as early as the first quarter.