Romania's economy grew 0.9% last year, and in the fourth quarter of 2024, the Gross Domestic Product (GDP) increased 0.7% compared to the same quarter in 2023 and 0.8% compared to the previous quarter, according to provisional (1) estimates the National Institute of Statistics (INS) published on Friday.

The seasonally adjusted GDP estimate for the fourth quarter of 2024 was 453.833 billion lei at current prices, representing a real increase of 0.8% compared to the third quarter of 2024 and a 0.7% increase compared to the fourth quarter of 2023.

On a gross series, the estimated GDP for the fourth quarter of 2024 was 523.709 billion lei at current prices, representing a real increase of 0.7% compared to the fourth quarter of 2023.

The estimated GDP for 2024 was 1.766 trillion lei at current prices, marking a real increase of 0.9% compared to 2023.

Positive contributions to the GDP growth in 2024 compared to 2023 came from the following sectors: wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; hotels and restaurants (+0.4%), with a share of 20.7% in GDP formation, and whose activity volume increased 2.1%; public administration and defence; public social security; education; health and social assistance (+0.1%), with a share of 12.8% in GDP formation, and whose activity volume grew 0.6%; cultural, recreational, and entertainment activities; repair of household goods and other services (+0.2%), with a share of 3.1% in GDP formation, and whose activity volume gained 6.8%.

Negative contributions to GDP growth came from agriculture (-0.4%), with a share of 3.2% in GDP formation, and whose activity volume decreased 10.5%; construction (-0.2%), with a share of 7.5% in GDP formation, and whose activity volume dropped 2.4%; and real estate transactions (-0.1%), with a share of 7.2% in GDP formation, and whose activity volume slid 1.3%.

Industries such as information and communication, financial intermediation and insurance, as well as professional, scientific and technical activities, administrative services and support services did not contribute to changes in GDP, according to INS.

A positive contribution to GDP growth also came from net taxes on products (+0.9%), which registered a volume increase of 9.6%.

Regarding GDP use, in 2024 compared to 2023, growth was primarily due to the final consumption expenditure of households, whose volume increased 5.9%, contributing +3.6% to GDP growth. The final consumption expenditure of public administrations, whose volume decreased 3%, contributed -0.2% to the change in GDP. The collective final consumption of public administrations, whose volume dropped 2.4%, contributed -0.2% to GDP change, and gross fixed capital formation, whose volume decreased 1.7%, contributed -0.4% to the GDP change.

A negative impact on GDP growth came from net exports (-2.9%), resulting from a decrease in the volume of exports of goods and services by 3.6%, correlated with a significant increase in the volume of imports of goods and services (+3.4%). AGERPRES (RO - writing by: George Banciulea; EN - writing by: Adina Panaitescu)