FX.co ★ Romania's GDP Growth Slows to 0.3% in Q1

In the first quarter of 2025, Romania's GDP experienced a year-on-year increase of 0.3%, slightly surpassing the initial forecast of 0.2%. This represents a notable slowdown compared to the 1.5% growth observed in the prior quarter, as reported in the revised estimates. This quarter marked Romania's most sluggish growth since the first quarter of 2024, primarily attributed to a decrease in government expenditure by 2.9%. On the other hand, gross fixed capital formation rose substantially by 18.9%, and there was a modest 0.3% rise in household consumption. However, the impact of net external demand dampened overall growth, as imports increased by 3.8%, outpacing the 3.4% rise in exports. On a seasonally adjusted quarterly basis, the Romanian economy remained stagnant in the first quarter, following a 0.5% growth in the preceding quarter.