Economic growth of 6% boosts the leu and the stock market

GDP rose by up to RON 404.7 billion (€122 bln), according to data published yesterday by the National Institute of Statistics (INS), leading to a 2.33 percent budget deficit and a 13.9 percent current account deficit. In spite of a negative contribution by agriculture to GDP, due to severe drought last year, construction and services compensated with higher contributions to the gross domestic product. Furthermore, these fields will be at the foundation of solid growth in 2008.

“Last year, a significant increase was registered in the services and construction fields. It is likely that an increase in the consumption growth rate was registered in the fourth quarter. VAT could have had a stronger impact, but net taxes alone make up 10-12 percent of GDP,” BCR’s Chief Economist, Lucian Anghel, told Business Standard.