Romanian economy shrinks 1.4% in Q4

Figures

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The Romanian gross domestic product (GDP) contracted 1.4% year-on-year in the fourth quarter of 2020, better than an earlier estimate of a 1.5% contraction, after a downwardly revised 5.6% drop in the previous period, figures from the Bucharest-based National Institute of Statistics (INS) showed on Tuesday.

This was the third straight quarter of contraction in the GDP, but the weakest contraction in the current sequence, mainly due to a softer fall in government expenditure (-1.5% vs -8% in Q3).

On the positive note, fixed investment grew faster (6.5% vs 2.8%). Meanwhile, household consumption continued to decline (-5.5% vs -4%). On a seasonally adjusted quarterly basis, the economy grew 4.8%, after a downwardly revised 5.6% growth in the third quarter. For 2020 full year, the economy shrank by 3.9%, reversing from a 4.1% growth in 2019.

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