Romania Records 12th Highest Annual Economic Growth in EU
Romania achieved the 12th highest annual economic growth among the 23 European Union states that published data for the second quarter. Prime Minister Marcel Ciolacu, in an electoral year, expressed optimism in a discussion with Profit.ro, stating that Romania will end the year with the highest growth rate in the EU.
The Romanian economy grew by 0.8% annually in the second quarter of 2024 and by 0.1% compared to the previous quarter.
Annual Growth Rate Below Expectations
Although the annual growth rate accelerated from a mere 0.1% in the first quarter (which was revised downward), it fell significantly short of analysts’ expectations, which had predicted a median growth of 2.1%. Data collected by the European statistical office revealed that the EU economy grew by 0.3% quarterly and 0.8% annually in Q2. Among the member states that published GDP dynamics data, Romania ranked 12th, tied with the Netherlands and Slovenia.
Poland recorded the highest annual growth rate at 4%, followed by Cyprus (3.7%), Spain (2.9%), Slovakia (2.1%), Bulgaria (2%), Portugal (1.5%), Lithuania (1.4%), Hungary (1.3%), France (1.1%), Belgium (1.1%), and Italy (0.9%).
Prime Minister’s Promises Amidst Economic Challenges
Despite these figures, Prime Minister Marcel Ciolacu (PSD) insists that Romania will rank first in economic growth by the end of the year. However, this assertion appears challenging at the moment, given that the economy has only grown by 0.7% (unadjusted) and 1.5% (adjusted) in the first half of the year, marking the second weakest growth rate in the region, significantly lagging behind Poland, for instance. Economists have started to lower their economic growth forecasts for this year to around 2%, down from nearly 3%.
Countries Experiencing Declines in GDP
Additionally, there are countries that recorded a decline in GDP during Q2, including Estonia (-1.7%), Ireland (-1.4%), Finland (-0.7%), Latvia (-0.4%), and notably, Germany (-0.1%).
