BUCHAREST, Dec. 7 (Xinhua) -- Household consumption continued to be the key engine of economic growth in Romania in the first three quarters of the current year, while exports and investment kept having a negative impact on gross domestic product (GDP), the National Institute of Statistics (INS) reported on Friday.
During the period of January-September, GDP grew by 4.2 percent on the year in both seasonally adjusted and non-adjusted terms.
Growth was mainly due to household final consumption expenditure, which grew by 5 percent, contributing plus 3.1 percent to economic growth. A negative impact on growth was recorded mainly in exports and investment, contributing 1.5 percent and -0.2 percent, respectively.
Almost all economic branches contributed positively to GDP growth during the first nine months, with more important contributions coming from industry (+1.1 percent), retail and wholesale commerce, automobile and motorcycle repair, transport and storage, hotels and restaurants (+0.6 percent) and agriculture, forestry and fishing (+0.6 percent).
The National Commission for Prognosis estimates a 6.1 percent GDP growth for 2018, while the European Commission forecasts a 4.5 percent growth and international financial institutions, including the World Bank, the International Monetary Fund and others, predict an increase between 4.5 percent and 5 percent.
Romania's GDP registered 7 percent growth last year, to 856.35 billion lei (211.3 billion U.S. dollars), the highest since 2008.
The growth of Romania's economy has been at the forefront among European Union countries in recent years. Consumption is the main engine behind growth, followed by private investment, while public projects are at a standstill. Wages are rising, buoyed by public sector salary increases, which boost consumption.
Economists believe that the government would have to take a more restrictive approach in the future to avoid the risk of macroeconomic destabilization.
