What were the two engines of the Romanian economy in the first quarter?

Population consumption and investment were the two main drivers of economic growth in the first quarter of 2024, according to the latest report by the National Institute of Statistics (INS) on Friday.

INS detailed that consumption expenses increased by 3.3%, contributing +2.2% to GDP growth, while gross fixed capital formation (investments) increased in volume by 6.6 %, contributing +1.3% to GDP growth.

According to exact data, final consumption expenditure of households, whose volume increased by 3.3% contributed by +2.2% to the GDP growth rate, while individual final consumption expenditure of General government whose volume increased by 3.9% contributed by +0.3% to the GDP growth rate. Collective final consumption expenditure of General government whose volume increased by 4.0% contributed by +0.4% to the GDP growth rate and gross fixed capital formation whose volume increased by 6.6% contributing by +1.3% to the GDP growth rate.

The Gross Domestic Product estimated for Q1 2024 amounted to 339404.0 million lei current prices, increasing – in real terms – by 0.1% as against Q1 2023.

The following industries contributed to the GDP increase in Q1 2024 as against Q1 2023:

• Information and communication (+0.2%), with a share of 8.9% in GDP, whose activity volume increased by 2.0%;
• Shows, culture and recreation activities; repair of households goods and other services (+0.2%), with a share in GDP of 2.6%, which recorded an increase in activity volume by 7.0%;
• Public administration and defence; social insurance of public sector; education; health and social assistance (+0.1%), with a share of 15.0% in GDP, whose activity volume increased by 0.9%;
• Net taxes on products (+0.6%), with a share in GDP of 8.3%, which recorded an increase in their volume by 6.0%.