Romania’s GDP completes five-quarter quasi-stagnation in Q1 2025
<p>Romania’s 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>

<p>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&amp;C and real estate was offset by the shrinking industrial activity (-3.0% y/y).&nbsp;</p>

<p>The 0.3% y/y advance was secured by the net taxes minus subsidies – reflecting fewer subsidies extended this year compared to 2024.</p>

<p>The final consumption advanced by 2.8% y/y and pushed up net imports – which hit 7.5% of the total demand (consumption plus gross capital formation), the largest share since 2010.&nbsp;</p>

<p>Notably, the ratio that shows how much the country’s global demand for consumption and investments exceeds the local production has exceeded 10% quite frequently during 2004-2008.&nbsp;</p>

<p>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>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com/">Oleg Kachura/Dreamstime.com</a>)</em></p>