Romania\u2019s GDP increased by an average of 0.1 q\/q over the past five quarters to Q1 2025, when it posted a meager 0.3% y\/y advance and quarterly standstill (+0% q\/q), according to data published by the statistics office INS. The new data provides details on specific formation and utilization segments but confirms the overall economic dynamics.<\/p>\n
On the formation side, in annual terms, the robust growth in constructions (+9.8% y\/y, partly on a low base) combined with slight advances in IT&C and real estate was offset by the shrinking industrial activity (-3.0% y\/y).\u00a0<\/p>\n
The 0.3% y\/y advance was secured by the net taxes minus subsidies \u2013 reflecting fewer subsidies extended this year compared to 2024.<\/p>\n
The final consumption advanced by 2.8% y\/y and pushed up net imports \u2013 which hit 7.5% of the total demand (consumption plus gross capital formation), the largest share since 2010.\u00a0<\/p>\n
Notably, the ratio that shows how much the country\u2019s global demand for consumption and investments exceeds the local production has exceeded 10% quite frequently during 2004-2008.\u00a0<\/p>\n
However, the FDI inflows in Romania were much higher at that time: 8.6% of GDP in 2024 and 9.0% of GDP in 2006, compared to 2.1% in 2023 and 1.6% in 2024.<\/p>\n