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Basescu: Ctrl Bk’s Optimism On Econ Evolution Is Not Justified, Romania To Enter Recession

Romanian President Traian Basescu told ministers, within the government meeting on Sunday, that the central bank’s optimism about the country’s economic evolution is not at all justified, adding Romania will see a decrease in gross domestic product in the second quarter too and enter recession.
Basescu: Ctrl Bk’s Optimism On Econ Evolution Is Not Justified, Romania To Enter Recession
14 iun. 2009, 13:26, English

However, the head of state stressed he would continue to firmly support the government until the economic crisis is gone, hoping it will vanish away in due time.

Furthermore, Basescu said it is difficult to forecast that Romania’s 2009 agricultural output will be equal to that in 2008, which was a good agricultural year.

In May this year, central bank governor Mugur Isarescu said Romania’s economy will go through a "V" shaped recession, with a sharp fall followed by a gradual recovery, and the deepest point was in the first quarter.

Mid-May, the National Statistics Institute said Romania’s first quarter GDP shrank by a seasonally-adjusted 2.6% compared with the fourth quarter of 2008, and was down 6.4% against the first three months of 2008, in unadjusted data.

In the last quarter of 2008, seasonally-adjusted GDP fell 3.4% compared with the July-September period, thus the economy is in recession after two consecutive quarters of economic contraction.