Romania’s retail trade turnover grew by 19.1% in the first four months of this year compared to the same period last year, according to the National Statistics Institute (INS). The figure does not include the trade with motor vehicles and motorcycles.

The growth was due to the 28.1% increase in the retail trade with food, beverages, and tobacco as well as the 16.7% increase non-food sales. The retail trade with fuel went up by 9.2% during this period year-on-year.

In April, the retail trade turnover rose by 19.1% compared to the same month in 2015 and by 6.7% compared to March.

The VAT rate cut on food from 24% to 9%, in June 2015, and the general VAT rate cut from 24% to 20%, as well as the wage increases in the public sector have contributed to the boost in consumption. The higher domestic consumption has also boosted the GDP growth in the first quarter of this year.

editor@romania-insider.com