Romania: Economy still contracting in fourth quarter
February 15, 2011
According to the flash estimate released on 15 January by the National Institute of Statistics (INS), GDP contracted 0.6% in the fourth quarter over the same period the previous year. The reading marked the eighth consecutive quarter of declining economic activity and was broadly in line with market expectations. Growth in the fourth quarter reflected an improvement compared to the 2.5% contraction tallied in Q3, as the economy slowly recovers from the severe austerity measures, which have been in place since mid-2010. In seasonally adjusted terms, the economy contracted 0.5% over the previous quarter, following the 0.7% drop tallied in Q3. A revised and more complete set of data will be published on 3 March. The government expects the economy to return to positive growth this year and expand 1.5%.