Romania GDP growth slows down in Q2

BUCHAREST: Romania's economic growth slowed to 1.4 percent on the year in the second quarter after a 1.7 percent growth in January-March, and was 0.2 percent up on the quarter, data showed on Tuesday.

The second quarter year-on-year growth, published by the National Statistics Board (INS) as a flash estimate on Tuesday, was well above market's 0.8 percent forecast, but the quarterly growth was a touch below market expectations.

The economy has risen 1.7 percent on the year and edged up 0.7 percent on a quarterly basis in January-March.

The statistics office said Romania's economy was 1.6 percent up on the year in January-June.

Second quarter growth was seen slowing on an yearly and quarterly basis because of a deceleration in the growth pace of exports and a mixed evolution of industry in April-June, due to falling orders from western Europe -- Romania's main trading partner.

The economy is expected to grow 1.5 percent this year.

The GDP fell more than 7 percent in 2009 and 1.3 percent last year as the government enforced painful public sector wage cuts and raised value added tax to keep the fiscal deficit in check and an IMF-led aid package on track.

Copyright Reuters, 2011