Romanian Q2 GDP grows by 5.6 percent
BUCHAREST (Reuters) – Romania’s economy grew by a lower-than-expected 5.6 percent in the second quarter of 2007, compared with 7.8 percent in the same period last year, the statistics office said yesterday. GDP was 5.8 percent up in the first half on 2007, it said. Analysts surveyed by Reuters had forecast 6.5 percent growth for the second quarter of this year, Romania’s first in the European Union. The office, which will issue GDP breakdown on Friday, said nominal GDP was 86.7 billion lei ($36.15 billion) in the second quarter. The economy grew 7.7 percent in 2006 and analysts expect it to slow down to around 6 percent this year. Separately, Romania’s consolidated budget recorded a surplus in the first seven months of this year equal to 0.5 percent of gross domestic product, Finance and Economy Ministry data showed yesterday. The European Union newcomer targets a shortfall of 2.8 percent of GDP this year but Brussels has said its calculations put the planned gap above the bloc’s 3 percent limit. Romania, which has been criticized by international observers for unpredictable budget spending and insufficient transparency, needs to boost efficiency of spending and make badly needed improvements in infrastructure and public finances. Finance and Economy Minister Varujan Vosganian recently said the Black Sea state has scaled down state spending in the first half of the year in a bid to offset additional expenditures planned later in the year, such as a pension rise that came into effect on September 1. Ministry data for January-July showed a consolidated nominal surplus of 1.9 billion lei ($783 million). Revenues totaled 71 billion lei, or 18.2 percent of GDP, while spending reached 69 billion lei, or 17.7 percent of GDP. Romania’s 2007 budget plan projects revenues and spending at 35.6 percent and 38.3 percent of GDP, respectively. The year-end nominal deficit target is seen at roughly 10 billion lei.
