Romania's economy dropped slightly in the first quarter, but good news from industry and exports

Romania’s GDP estimated for Q1 2010 was 124,541 billion lei (current prices), dropping 0.3% against Q4 2009, a National Institute of Statistics report shows. The seasonal adjustment cancels the seasonal effects from the data series to stress the real economic evolution from consecutive periods. The most important drops were recorded in constructions – 17.3%, trade sales – 19.7%, and the population’s consumption – 4%. The good news comes from the industry, which is up 4.2%, and the net export.

The gross GDP is estimated to have been around 96.707 billion lei in Q1 2010, dropping – in real terms – 2.6% against Q1 2009.

The Industry – plus 4.2%

The industry was the sole branch that managed to record an increase in the activity volume, namely 4.2%. The constructions department shrank significantly its volume, by 17.3%. Minor reductions were seen in agriculture, hunting and forestry, fishing and pisciculture (-0.9%); commerce, car repairs and household objects; hotels and restaurants; transport and telecomms (-2.4%); financial activities, real estate, renting, company services (-1.5%) and in other services (-2.7%).

Inner demand dropped 3%

As a consequence of the overall economic negative evolution, the collected tax volume per product dropped, the net taxes’ collection seeing a 10.7% reduction. In regards to the GDP usage, the inner demand dropped 3% in Q1 in comparison with the same period last year, mainly because of the 28.9% shrinkage of the gross fix capital set-up.

The final total consumption reduced by 4%

The finite total consumption reduced by 4%, especially due to the decrease in spending for the finite consumption in the population’s households (-4.8%), a consequence or the shrinkage in the volume of retail goods, namely a 19.7% minus. The volume of spending for the public administration’s consumption shrank by 1.8%. The improvement of net export of goods and services had a positive impact on the GDP, namely + 19.5%, close to imports – 14.9%.