Analysts: Economy contracts by 3.4% in Q1
The economy remained in recession in the first quarter of the
year, with the GDP down by 3.4% in real terms compared with the
similar period of 2009, and by 0.5% against the last quarter of
2009, according to analyst estimates.
Romania is still in recession territory, with quarterly economic
growth most likely to be postponed until the second half of the
year.
Based on seasonally adjusted data, the GDP fell by 0.5% in the
first quarter of the year against the fourth quarter of 2009,
according to an internal survey conducted by the Association of
Financial-Banking Analysts in Romania.
Although positive signals emerged in the real economy in March,
they did not manage to offset the weak performance of the previous
few months.
The wide majority of economic analysts were disappointed in the
industrial production, trade, and constructions figures for
February, which continued to see declines. As a result, they
revised forecasts for this year's economic growth downwards, to
under 1%.
For the entire year the IMF now expects the economy to stagnate,
but does not rule out a contraction of up to 0.5%