Bloomberg News

Romanian Economy Shrinks 0.1% in First Quarter, Enters Recession

June 06, 2012

Romania’s economy posted its second quarterly contraction in the first three months of the year, re- entering a recession as the European sovereign-debt crisis and a cold snap slowed growth in exports and industrial output.

Gross domestic product contracted a seasonally adjusted 0.1 percent from the previous quarter, after shrinking 0.2 percent in the fourth quarter, matching a preliminary report on May 15, the National Statistics Office in Bucharest said today in an e- mail. GDP grew a seasonally unadjusted 0.3 percent from a year earlier.

The eastern European country’s economy has slipped into its second recession in four years after exiting its worst decline on record last year, as European spending cuts slowed exports including Dacia SA cars. Freezing temperatures and heavy snowfall in the first quarter also disrupted transportation and supply chains.

Romania’s output growth will probably slow this year to 1.5 percent from 2.5 percent in 2011 as European austerity measures hamper export growth, according to International Monetary Fund forecasts.

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


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus