Romania’s economy exhibited a moderate growth trajectory in 2024, achieving a 0.9% increase in Gross Domestic Product (GDP) compared to the previous year, according to preliminary data released by the National Institute of Statistics (INS). This growth, while steady, reflects a complex interplay of sectoral performances and consumer behaviors.
In the final quarter of 2024, the seasonally adjusted GDP reached 453.833 billion lei at current prices, marking a 0.8% rise from the preceding quarter and a 0.7% increase compared to the same period in 2023. On a gross series basis, the fourth quarter’s GDP was estimated at 523.709 billion lei, showing a 0.7% year-over-year growth.
The primary drivers of this modest expansion were the service sectors. Wholesale and retail trade, alongside transportation, hospitality, and related services, contributed significantly, registering a 2.1% increase in activity and accounting for 20.7% of the total GDP. Public administration, education, and healthcare also played a supporting role, with a 0.6% activity increase and a 12.8% share of GDP. Notably, entertainment and recreational services saw a robust 6.8% growth, highlighting shifting consumer preferences.
However, not all sectors experienced positive momentum. Agriculture faced a significant downturn, with a 10.5% decrease in activity, resulting in a 0.4% negative impact on overall GDP. The construction sector also contracted by 2.4%, contributing a 0.2% negative impact. Real estate transactions further added to the downward pressure, shrinking by 1.3%. Industry, information and communications, financial intermediation, and professional services remained neutral in their contribution to GDP change.
From a GDP usage perspective, household final consumption expenditure emerged as the primary growth engine, surging by 5.9% and contributing a substantial 3.6% to the overall GDP increase. Conversely, public administration expenditures, both individual and collective, decreased, as did gross fixed capital formation, indicating a slowdown in public and private investment.
A significant drag on GDP growth came from net exports, which declined by 2.9%. This was primarily due to a 3.6% decrease in export volume coupled with a 3.4% rise in import volume, reflecting a widening trade deficit. Additionally, net taxes on products experienced a notable 9.6% increase, contributing positively to GDP growth.
The data underscores the need for balanced economic policies that foster sustainable growth across all sectors while addressing trade imbalances.
