Services & Construction, Main GDP Drivers

Services and the construction industry generated over half of the 8.9% economic growth logged for the first nine months of the year, according to Romania"s National Statistics Institute (INS). Specifically, services generated 2.7% of the GDP, while construction added 2.4% between January and September 2008. Agriculture contributed 1.6%, the industry 1.2% and net taxes on products 1%.

INS data indicate that the construction industry advanced 31.1% year-on-year, while the added value generated by services gained 5.6% in the same interval. The industry only inched up 4.8%, while agriculture secured a 23.4% growth. Net taxes on products grew by 8.5% compared to the corresponding period of 2007. The significant growth in construction and services increased their cumulated weight within the GDP to 56.2% over the first three quarters of the year, INS announced.

The domestic demand continued to advance rapidly in the first three quarters, gaining 11.5% year-on-year amid a 14.1% surge in consumer spending. The Gross capital formation advanced by 27.7%. Romania"s GDP totalled 335.2 billion RON (92 billion EUR) at the end of September.

Industrial labour productivity gained 7.4% in the first ten months of the year, especially due to the processing industries and the energy sector, according to INS President Vergil Voineagu. He added that the increase in industrial labour productivity between January and October 2008 was slower than in the first nine months of the year, when the indicator reached 8.4%. The trend is similar to that in 2007, when a 9.9% year-on-year growth was recorded.

The demographic report for October indicates a decline by 1,139 capita, following a decrease in births and an increase in deaths compared to the previous month. The birth rate decreased to 11.2 newborn per 1,000 capita, compared to 11.5 newborn per capita in September.