Q3 economic growth at 5.7%

GDP rose to RON 266.59 billion (€75.46 bln) in the first nine months of 2007, according to data from the National Institute of Statistics (INS). Although the institute did not provide details on GDP growth, analysts say the rise is due to the advance of the construction segment, which partly compensated the negative impact of the effects on agriculture of the severe drought.

Construction is the Romanian economy’s most dynamic segment, with 37 percent growth in the third quarter. Retail sales and services also performed well.

As for the whole of 2007, economic growth is likely to amount to 5-5.8 percent. In their Economic Overview Romania study, Raiffeisen specialists foresee a 5 percent advance of GDP, while UniCredit analysts estimate growth of 5.8 percent by the end of the year. Executive Director of the Applied Economy Group (GEA), Liviu Voinea, says that growth is likely to amount to 5.2 percent, or 2.5 percent lower than in 2006.