A flash estimate from the national statistics institute revealed the gross domestic product grew by a seasonally-adjusted 0.2% in April to June, compared with the previous quarter.
The data was mostly in line with the analyst expectations, as signs of slowdown were already known from other statistics data. Even Prime Minister Emil Boc said last week that the second-quarter economic growth was likely affected by a slowdown in industrial production and exports.
ING Bank Romania’s chief economist Nicolae Chidesciuc said the economic growth in the second quarter could be explained through an exceptional farming output, as other sectors posted weak performances.
The second-quarter gross domestic product rose 1.4% compared with the same period of 2010. In seasonally-adjusted data, the GDP grew 0.3% on the year in April to June.
In the first half, Romania’s GDP rose 1.6% compared with the year-earlier period. The first-half GDP growth was 0.3% in seasonally-adjusted terms.
Chidesciuc said the agricultural outstanding performance is the only chance for Romania to attain this year’s economic growth target of 1.5%.
However, a growth of only 0.2% is insignificant compared with the potential and the needs of Romania’s economy, said Lucian Anghel, chief economist of BCR.
“The glass is half empty and half full. An economic slowdown is clear, and the 0.2% figure doesn’t cover the needs of the economy. However, when we compare with the first half of 2010, which was better than the second half, the growth was of 1.6%,” Anghel said.
He added the second-half growth might be higher on a positive base effect.
Last year, the Romanian economy was on upward trend, but the government raised the sales tax in July and cut public salaries by 25% to keep the budget deficit in check. The five-percentage point increase, to 24%, and the wage cuts had a strong impact on the domestic demand, and the economy fell 1.2% compared with 2009.
Detailed figures for the second-quarter GDP are due for release September 6.