11 August 2009

ING: Romanias economy contracted by 9.7% in Q2



Romania’s Gross Domestic Product shrank by 9.7% in the second quarter as the performance of the construction sector was poorer than estimated, ING Bank says.
Therefore, ING Bank has revised its initial forecast downward, from 8.6% contraction for the period under review. However, ING analysts left on 7.1% contraction forecast for the full year unchanged, adding that further revisions are likely.

The performance of the construction sector was not as poor as the bank had expected a month ago, but worse than they had forecasted for second quarter.

ING analysts have thus revised GDP forecast, taking into account data on the retail industry.

Retail sales dropped 16.3% YoY, while the seasonally adjusted monthly decline passed 3% mark, which “worsens any forecast on recovery of consumption”.

Romania’s second-quarter contraction exceeded 8%, according to the Minister of Finances, Gheorghe Pogea .

National Institute of Statistics will make public on August 13, estimative data on the country’s GDP.



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