Tuesday, December 6, 2011

Romania 3rd-Quarter Economic Growth Quickens on Harvest, Demand

By Irina Savu

Dec. 6 (Bloomberg) -- Romania’s economic growth quickened in the third quarter to the fastest in three years, helped by a bumper harvest, growing industry and a recovery in domestic consumption, final figures show.

Gross domestic product rose a seasonally unadjusted 4.4 percent from a year earlier, matching the preliminary report and compared with 1.4 percent in the second quarter, the National Statistics Institute in Bucharest said today. Output grew a seasonally adjusted 1.8 percent from the previous quarter, slower than a previous estimate of 1.9 percent.

The eastern European country’s economy will probably grow 1.5 percent in 2011, aided by western European demand for the country’s manufacturing products, including Dacia SA cars. It suffered its worst recession on record in the previous two years, according to government and International Monetary Fund forecasts.

GDP may exceed estimates and grow more than 2 percent this year, should the fourth-quarter output rise 2.5 percent, President Traian Basescu said on Nov. 14.

Agriculture and industrial output, the main growth drivers, rose 22.1 percent and 5.9 percent in the third quarter, while final household consumption rose 3.6 percent for the first time since 2008, according to the institute.

The export-driven economic growth will probably slow next year to between 1.8 percent to 2.3 percent, compared with a previous forecast of 3.5 percent as Europe’s debt crisis slows growth in Romania’s major trading partners, Jeffrey Franks, the International Monetary Fund’s Mission Chief to Romania, said on Nov. 7.

--Editor: James M. Gomez

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 at jagomez@bloomberg.net

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