Romanian President Nicușor Dan / Photo: stiripesurse.ro
On a quarterly basis, the economy showed no growth. GDP remained unchanged after seasonal and calendar adjustments.
Domestic demand remains the main driver of growth, according to Investing. Household consumption rose 0.7% year-over-year in January–March, while gross fixed capital formation increased by 2.2%. However, this was not enough to offset the pressure from the industrial sector.
Industrial production fell by 1.3% compared to the first quarter of last year. At the same time, on a quarterly basis, the sector managed to recover, posting growth of 7.4%.
The construction sector performed best at the start of the year. Output in the sector grew by 7.9% year-over-year and by 16.1% compared to the previous quarter, becoming one of the main sources of growth.
Agriculture also showed modest year-over-year growth of 0.8%, though output declined by 6.1% on a quarterly basis.
The external sector had a mixed impact on the economy. Exports of goods and services increased by 1.3% year-over-year but declined by 0.3% compared to the fourth quarter. Imports rose by 0.5% year-over-year and by 0.6% quarter-over-quarter.
The data show that the Romanian economy remains resilient thanks to consumption and investment, but faces challenges in the industrial sector, which remains one of the key drivers of further growth.
