Romania’s retail trade turnover rose by 7.9% in October compared to the same month of last year, the lowest growth rate in over a year. The retail sector’s increase significantly slowed down in September and October, from a rate of over 20% in February, as the effects of the VAT rate cuts have started to fade.

The food retail turnover went up by 5.9% year-on-year in October, down from a 31% growth rate in February. The non-food sales, however, were 14.1% higher compared to October 2015. Meanwhile, the fuel sales almost stagnated, with a growth rate of only 0.4%.

In the first ten months of the year, the retail trade turnover went up by 14.7% compared to the same period of the year, as the food, beverages and tobacco sales increased by 16.5%, according to data from the National Statistics Institute (INS).

The sales of non-food products went up by 15.2% year-on-year whereas the fuel trade rose by 10.9% year-on-year.

The retail sector’s growth was the main driver of Romania’s economic growth in the first three quarters of this year. The gross domestic product (GDP) went up by 4.9% in the first nine months of this year compared to the same period of 2015, but the growth rate went down from 6% in the second quarter to 4.4% in the third quarter, due to lower contribution from the domestic consumption.

editor@romania-insider.com