The retail trade turnover in Romania, except for cars and motorcycles, increased by 8.9% last year compared to the previous year.

The growth was mainly supported by the 19.1% increase in the sales of food, beverages, and tobacco, according to data from the National Statistics Institute (INS). The sale of fuels in specialized stores also went up by 5.8% last year, whereas the sales of non-food products increased by 2.8%.

In December 2015, the retail trade turnover increased by 8.6% compared to November. According to INS, the sales of food, beverages and tobacco went up by 23.3%, as a gross series, and the sales non-food products increased by 5.8%. However, the sale of fuels in specialized stores decreased by 9.5%. Compared to December 2014, the retail trade turnover went up by 15.5% in December last year.

The domestic consumption is currently the main growth engine for Romania’s economy, surpassing the exports. The VAT rate cut for food in June last year, from 24% to 9%, has boosted food sales. The general VAT rate cut from 24% to 20% on January 1, 2016, is expected to further boost domestic consumption.

Romanians spend more after VAT rate cut on food, study shows

Irina Popescu, irina.popescu@romania-insider.com