Romania 2Q GDP Growth Fueled By Industry

Compared with the second quarter of 2009, the economy shrank by 0.5% in seasonally adjusted terms, the data showed.

Constructions had a negative contribution of 8.3% to the second quarter GDP compared with the same period a year earlier, partly offset by a 5.9% growth in industry activity.

Retail, transport and telecom services had a negative impact of 4.2% to the second quarter GDP, while other services had a negative contribution of 2.7%.

Final consumption was down 0.7% in the second quarter compared with the year-ago quarter, due largely by reduced expenses with household consumption and with public administration.

Net exports also had a negative impact on the second quarter GDP, as imports of goods and services grew at a faster pace than exports, INS data showed.

In the first half of 2010, Romania’s economy shrank by 1.5% in real terms compared with the year-earlier period, due largely to declines in constructions and services.

When adjusted for seasonal factors, the economy contracted by 2.4% in the first half.

Romanian economy declined by a sharp 7.1% in 2009, after growth of over 7% a year before.

For 2010, the authorities forecast a contraction of around 1.9%.