“High-frequency indicators suggested a significant temporary pick-up in private consumption dynamics during the second quarter versus the same year-earlier period, primarily on the back of a base effect, but also amid the release of pent-up demand, especially in the services segment. Conversely, opposite developments were possible in the case of gross fixed capital formation, likely to contribute decisively to the decline in annual GDP dynamics in the second quarter, considering particularly the sizeable drop in the volume of construction works in April against the same period of 2021.”
At the same time, the contribution of net exports to annual GDP dynamics could become again slightly negative, as the annual change in exports of goods and services had diminished considerably in April and much more steeply than that in imports, inter alia amid unfavorable developments in external prices.
Consequently, the trade deficit had seen its annual dynamics expand more than twofold versus the first quarter average, while the current account deficit had further increased swiftly in annual terms, even in the context of a slight improvement in the evolution of the primary income balance.
The economic activity saw a much stronger-than-expected step-up in the first quarter of 2022, expanding by 5.2% against the fourth quarter of 2021, when it had added 1% against the previous quarter.
(English version by Loredana Fratila-Cristescu)