BUCHAREST: Romania's economy contracted 0.2% on the year in the first quarter, sharply less than market expectations, a flash estimate from the National Statistics Board showed on Tuesday.

Analysts polled by Reuters had expected the economy to contract 1.7% in January-March, but forecast economic growth of 5.2% and 4.7% overall this year and next, respectively.

On a quarterly basis, the economy advanced 2.8% in seasonally adjusted terms in January-March.