Country Economic Forecasts - Romania
Romania’s economy grew by 4.2% y/y in Q2 2018 but the composition of growth in the quarter raises questions about the sustainability of the expansion. The Q2 release demonstrated once again how heavily the economy is relying on consumer spending, up 5.1% on the year, for growth, while fixed investment is struggling to increase. Meanwhile, inventories boosted year-on-year GDP growth by 5.7 percentage points in Q2, but this was more than offset by a large deterioration in the real trade balance as imports rose much more than exports.
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