Economic growth below expectations in 2024
The National Institute of Statistics (INS) published on Thursday a new set of provisional data on the evolution of the gross domestic product (GDP) in the fourth quarter and throughout the year 2024. The new estimates indicate a more temperate economic growth than the one previously reported in March.
According to seasonally adjusted data, the GDP in the fourth quarter was 451,391 billion lei in current prices, up 0.6% compared to the previous quarter and 0.5% compared to the same period of 2023. Comparatively, in previous estimates, Ins was reported a quarterly increase of 0.8% and an annual one of 0.7%.
Annual increase of 0.8% in 2024
For the whole year 2024, the GDP was estimated at 1,760.11 billion lei (current prices), increasing-in real terms-by 0.8% compared to 2023. And this figure was slightly revised compared to the previous estimate, which indicated an increase of 0.9%.
In the gross series, the GDP for quarter IV 2024 was estimated at 521.020.2 million lei, with a real increase of 0.5% compared to the quarter IV 2023.
The INS mentioned that the seasonally adjusted series of the quarterly GDP was recalculated as a result of the revision of the estimates for all four quarters of 2024, which led to changes to the previous version.
The contributions of the economic sectors
At the level of economic branches, the review of the data has produced only minor adjustments of contributions to the GDP dynamics. The most important observations:
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Agriculture, forestry and fishing They have easily improved their contribution, from -0.4% to -0.2%, as a result of a positive revision of the volume of activity, from 89.5% to 94.1%.
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Industry It maintained its null contribution (+0.0%), while the volume of activity was adjusted negatively, from 100%to 99.8%.
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Building they have retained the negative contribution of -0.2%, and the volume of activity was revised, from 97.6%to 97.4%.
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sector trade, transport, hotels and restaurants It had a slightly upward review, from +0.4% to +0.3%, in the context of a decrease in the volume of activity (from 102.1% to 101.7%).
Most of the other sectors have registered null or unchanged contributions, without significant differences from the previous estimate.
Net product taxes, decreasing
Another revised element is the volume of net product taxes, which has been negatively adjusted with a percentage point in the current version, from 109.6% to 108.6%. This indicator reflects the difference between the taxes applied to the products and the subsidies received for them.
