"The GDP performance was determined by strong growth in services and construction, partially offset by agriculture," the INS said in a statement.

In nominal terms, the GDP was 287.2 billion lei ($97.82 billion).

The INS said GDP rose by 4.3 percent in the last quarter of 2005. It also said it revised the 2004 growth up to 8.4 percent from 8.3 percent. Analysts polled by Reuters earlier this month expected the Black Sea state's gross domestic product (GDP) to rise by a real 4.3 percent year-on-year in 2005.

Construction and services rose by 9.9 percent and 8.1 percent respectively. Growth remained robust in consumption and investment, the INS said.

Domestic spending has been a key driver of economic growth in Romania which hopes to join the European Union in 2007.

Final consumption expanded 8.5 percent in 2005, while household consumption rose by 9.0 percent.

Gross fixed capital creation was 13 percent up in 2005. The INS said the investment rate was 26.2 percent versus 24.3 percent in 2004.

The INS said net exports were minus 29.8 billion lei ($10.15 billion).