Romania’s economic performance in the first quarter was better than expected, with a 4.2% GDP growth. Although it is unlikely this rate will be sustained throughout the year, the country’s outlook for 2015 remains optimistic, EY said in a press release Monday.
Domestic consumption increased in real terms at a rate that hasn’t been attained since 2008, with a quarterly growth of 2.6% in the last quarter of 2014. Encouraging signs continued this year as well, as wage growth neared an average of 7% in January and February, the company said.
Domestic consumption is expected to rise by more than 4% in 2015, following a growth of 5% in 2014. Considerable wage growth, of over 6%, couples with low inflation, have improved consumer purchasing power in Romania.
EY estimates Romania’s GDP will grow 3.1% this year and 3.2% in 2016.
“Consumption is currently the main growth driver in Romania, after a long stagnation period that followed the global crisis, during which time consumption declined by around 10% in Romania. The growth tendency illustrates renewed confidence in the economy and we expect investments to rise as well,” said Bogdan Ion, Country Managing Partner at EY Romania.