However, the annual growth rate of private consumption could moderate to 5% in 2020, in the context of adjustment perspectives of the twin deficits.
“BT’s central macroeconomic scenario envisages an acceleration of the annual dynamics of private consumption from 5.2% in 2018 to 6.3% in 2019, an evolution triggered by a lax and unsustainable mix of economic policies. On the other hand, the annual private consumption growth rate could moderate to 5% in 2020, in the context of adjustment perspectives of the twin deficits”, stated Andrei Radulescu, macroeconomic analysis director with Banca Transilvania (BT).
Radulescu expects a 5.2% increase in private consumption in 2021.
Data from the country’s statistics board INS showed Wednesday that the annual dynamics of retail trade accelerated to 8.3% in July 2019, the best rate since March, backed by ha 9.5% increase in fuel sales, compared with the same period a year ago.
Food sales grew 5.9% in July 2019, the best rate since April, which is also due to incorporating this year’s crops.