We've left our GDP growth forecast for Romania in 2024 unchanged at 1.9%. Evidence that strong household consumption and investment are being offset by a deterioration in net exports means we are growing more concerned that the economy's supply side is unable to support the upturn in domestic demand. With GDP growth of just 0.7% in H1 2024 and the drag from net exports unlikely to abate in the near-term, the balance of risks to our forecast is tilted firmly to the downside. We plan to wait until the National Institute of Statistics releases a comprehensive set of revisions on October 10 before making any major changes to our near-term GDP growth forecast.
Romania: Weak supply side unable to match strong domestic demand