Romanian economy up 0.5 percent in Q2

Newsroom 14/08/2012 | 08:38

Romania’s gross domestic product has increased by 0.5 percent in the second quarter of this year compared to the first quarter, according to preliminary data released today by the National Institute of Statistics.

The growth comes after two consecutive quarters of decrease. Compared to the same period last year, the GDP increased by 1.2 percent in Q2 2012. Overall, the Romanian economy grew by 0.8 percent in the first semester of 2012.

Last week the Government slashed the economic growth forecast for this year by 0.3 percent to 1.2 percent of GDP. PM Ponta said the forecast was reduced due to the drought that affected the agricultural sector and the fact that the EU funds absorption target set by the former government was overoptimistic.

At the end of 2011, the government expected an economic growth for this year of between 1.8 percent and 2.3 percent which was later reduced to 1.5 percent and now to 1.2 percent.

The International Monetary Fund, too, has considerably reduced its economic growth forecast for Romania from a previous 1.5 percent level to 0.9 percent, according to an announcement made today by Erik der Vrijer, the IMF mission chief in Romania. For next year the IMF expects the local economy to grow by 3 percent.