Romania’s Econ Growth Seen Slowing Over Next Sixth Months – Report

Analysts see an annual inflation rate of 7% for Romania in the third quarter of the year, from 7.2% in the second quarter, while the Eastern European average inflation is seen at 6.3% in the third quarter compared to 5.8% in the second quarter.

Early August, the Romanian central bank revised up its inflation projection for this year, to 6.6% from its previous forecast of 6%.

Romania’s economy and finance minister Varujan Vosganian said last week the country’s first-half economic growth stood at 8.6%, driven by a gross domestic product growth of 8.9% in the second quarter.

Romania’s economic growth stood at 6% in 2007, and the country’s Forecast Commission sees it at 6.5% in 2008. The Romanian statistics institute is expected to release first-half and second quarter GDP data on September 1.

Even though the index calculated by the German institute for Central and Eastern Europe indicates a slight deterioration in the area’s economic environment, the outlook for the region remains positive.

Alongside Romania, analysts see economic growth slowing down in Estonia, Hungary, Latvia, Lithuania and Poland.

In July, the Ifo global economic environment index was at its lowest level since 2001.