Romania's GDP grows 2.1% in 2023 - provisional data II

Gross fixed capital formation led the increase with a contribution of 3.6 percentage points (pp), the statistical board, INS, said in a press statement.

Household consumption and final consumption of general government were also growth drivers, adding 1.8 pp and 0.4 pp, respectively. On the other hand, changes in inventories shaved 4.3 pp off GDP growth rate last year.

In the fourth quarter of 2023 alone, the country’s economy grew by a seasonally-adjusted 1.1% year-on-year, slowing down from a 4.4% growth rate recorded in the same period of 2022, INS said.

On an unadjusted basis, Romania's gross domestic product (GDP) grew by 3% on the year in the fourth quarter, compared to a 3.9% increase recorded in the prior-year period.

Growth in the fourth quarter of 2023 was mainly driven by a 21.4% annual increase in gross fixed capital formation, which contributed 2.9 percentage points (pp) to the unadjusted GDP growth rate. A 3% increase in final consumption of households contributed 1.8 pp.

The agricultural sector’s output saw a 16.2% year-on-year expansion in the fourth quarter of 2023, while the construction sector's production increased by 14.6%. The output of the industrial sector shrank by 2%.

Imports of goods and services increased by an annual 2.5%, while exports decreased by 1.8% year-on-year during the fourth quarter of 2023.

When compared to the third quarter of 2023, the Romanian economy contracted by a real 0.5% in the period October-December, following a 1% increase in the third quarter.

The country's economy expanded by an annual 4.1% in 2022 and by 5.7% in 2021.