Romanian 1Q GDP Seen Dn 2.9% - Prognosis Commission

Romanian gross domestic product is seen contracting by 2.9% in 2009’s first quarter to 88.5 billion lei (EUR1=RON4.2348), from RON91.13 billion in the first three months of 2008, according to a document of the National Prognosis Commission CNP obtained by MEDIAFAX.

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“The economic growth in the first quarter is projected at about -3%,” CNP president Ion Ghizdeanu told MEDIAFAX.

CNP sees a 10% contraction in industry in the first quarter compared with the same period of 2008.

The agriculture sector is to post a 1% decrease, while the services are seen contracting by 0.7%.

The commerce is projected to drop by 2%, and a growth is expected only in the construction sector, of 2.5%.

According to CNP, the first quarter has an 18% contribution to the full-year GDP.

The International Monetary Fund sees Romania’s GDP contracting by 4% in 2009, but the Romanian authorities said this was the worst case scenario in the negotiations.

Last week, Romania agreed with the IMF, the European Union and other international institutions a EUR20 billion financial package to help the country cushion the global crisis effects.

Romanian Statistics Institute will publish data regarding the first quarter GDP on May 15.

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