FX.co ★ Romania Q4 GDP Growth Revised Downward

Romania's GDP experienced a year-on-year increase of 0.5% in the fourth quarter of 2024. This growth was less robust than the previously estimated 0.7% and represented a slowdown from the upwardly revised 1.5% growth recorded in the previous quarter. This quarter's performance marked the weakest expansion since the first quarter, primarily due to a sharp decline in fixed investments, which fell by 17.9%, and a negative contribution from net external demand, with exports decreasing by 3.0% and imports rising by 5.3%. However, these declines were partly offset by a significant 6.7% rise in household consumption and a 4.3% increase in government expenditures. On a seasonally adjusted basis, the economy expanded by 0.6% in the fourth quarter, recovering from a 0.1% contraction in the previous period. For the entire year of 2024, GDP growth recorded at 0.8%, represented a deceleration from the 2.4% growth observed in 2023.