Romania’s Economy Grew Modestly in 2024, Only 0.9% Increase
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Loading... - Maria Laine
- 14 Feb 2025
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According to preliminary data released by the National Institute of Statistics (INS), Romania's economy experienced a modest growth of just 0.9% in 2024. This growth comes after a slower-than-expected performance in the fall, leading experts to significantly revise their forecasts for GDP growth for the year. Estimates for growth varied, ranging from a 0.8% increase to a maximum of 1.2%, reflecting differing levels of optimism and pessimism among economic analysts.
The Romanian government’s budget for this year was based on an anticipated economic growth rate of 2.5% and an average annual inflation rate of 4.4%. In contrast, last year’s budget was initially set with a growth expectation of 3.4%, but the economy ultimately only grew by 0.9%. This year’s performance marks the weakest economic growth in Romania over the past 12 years, excluding the year of the pandemic in 2020.
The INS reported that the Gross Domestic Product (GDP) in the fourth quarter of 2024 was 0.8% higher in real terms compared to the third quarter. When compared to the same quarter in 2023, the GDP recorded an increase of 0.7% in both unadjusted and seasonally adjusted series. The seasonally adjusted quarterly GDP figures were revised following the introduction of estimates for Q4 2024, with no significant differences noted compared to previously published revisions.
Romania's economic growth in 2024 has been modest, reflecting challenges that have led to revised forecasts and lower-than-expected performance. As the government navigates these economic conditions, the implications for future budgets and growth strategies will be critical in fostering a more robust economic environment moving forward.
