Wednesday, December 8, 2010

Romanian Industrial Output Growth Slows as Recession Saps Demand

Romanian industrial production growth slowed in October as a recession eroded demand for the country’s manufactured goods.

Output rose an annual 2 percent after rising 2.8 percent in September, the National Statistics Institute in Bucharest said today in an e-mail. Industrial production was unchanged on the month after a 1 percent monthly gain in September.

Romania is struggling to recover from its worst recession on record and is relying on international bailout loans to stay afloat. The economy shrank an annual 2.5 percent in the third quarter after contracting 0.5 percent in the previous three months as a government increase in value-added taxes and public payrolls cuts damped demand.

The International Monetary Fund, which is leading a 20 billion-euro ($26.4 billion) bailout, expects the economy to start expanding next year, led by industrial exports.

Industrial sales growth slowed to an annual 8.3 percent in October from 14.1 percent in September on a weaker demand abroad for Romanian chemicals, steel products and textiles, the statistics office said today in a separate release. Production of manufactured goods rose 4 percent in October compared with a 4.4 percent gain in September, according to the institute.

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague atjagomez@bloomberg.net

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