The final consumption slid 0.7% on the year in the second quarter, due to weak demand, data from the statistics institute showed. Household consumption was what sustained Romania’s growth before the global financial crisis. In 2008, household consumption increased by 8.4%.
In 2009, however, consumption fell 9.2%, while last year posted a decline of 2%.
On the other hand, household savings increased in the past two years and the annual inflation rate decelerated to the lowest level in over two decades, setting the background for consumption recovery.
According to central bank data, overall private deposits rose 5.1% on the year to 178 billion lei (EUR41 billion) in August, fueled by higher deposits in Romanian lei.