Romanian economy shrinks at softer pace in Q4

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The Romanian gross domestic product (GDP) contracted 1.4 % year-on-year in the fourth quarter of 2020, following a 5.6% decline in the previous period, the Bucharest-based National Institute of Statistics (INS) said in a statement Thursday.

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 (-2.3% vs -8%).

Also, exports dropped much less (-2.3% vs -6.4% in Q3) while imports (2.2% vs -3.4%) increased, amid an improving global demand. Meanwhile, household consumption continued to decline (-6.2% vs -4% in Q3).

On a positive note, fixed investment grew faster (6.5% vs 2.8%). On a seasonally adjusted quarterly basis, the economy grew 4.8%, after a 5.6% growth in the third quarter. For 2020 as a whole, the economy shrank by 3.9%, reversing from a 4.1% growth in 2019. 

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