Raiffeisen estimates a 4.6% economic growth in Q3

The construction sector remains the most dynamic in the Romanian economy, with a 37 percent year-on-year increase in Q3, followed by retail sales and services. The growth rate of retail sales was 29.9 percent in Q3, compared to 8.9 percent in Q1, mainly due to sales of foodstuffs.

"The economic activity remains strong but the growth rate of GDP will continue to slide," said Ionut Dumitru, Chief of the Macroeconomic Research Department of Raiffeisen Bank.

Raiffeisen specialists forecast an economic growth rate of a mere 5 percent for the end of 2007, and a 6 percent and 5.5 percent increase in GDP in 2008 and 2009, respectively, according to the "Economic Overview Romania" study.

Foreign investors have become more cautious regarding economic imbalances, and economic growth below the 2007 official forecasts of 6 percent could bring about a new depreciation of the national currency, which could in turn cause problems for the financial stability of companies and meeting the inflation target.