Chief economist says BNR considered the record GDP advance when it revised the inflation estimate
Publish date: 01-09-2008Romania's economic growth that exceeded estimates in the first semester puts pressure on the inflation, but was taken into account when the central bank (BNR) revised upwards its inflation prognosis for the end of the year, BNR chief economist Valentin Lazea announced.
BNR increased the inflation estimate with 0.6 percent to 6.6 percent for the end of 2008, when it presented its most recent quarterly report on inflation on August 4.
The positive effect of the agriculture hike, which led to a decrease in food prices, will not counter the pressure on inflation coming from an accelerated consumption, said Lazea.
The gross domestic product (GDP) stood at 195.8 billion lei (53.3 billion euros) in the first semester, an 8.8 percent year-on-year increase. The annual economic growth rate for the second quarter registered a record 9.3 percent, compared to the estimated value of 8 - 8.5 percent.
Romania's economy last peaked two years ago, when it climbed 7.4 percent in the first semester of 2006, and respectively 7.9 percent in the second quarter.
But the current growth rate exceeds the country's potential and Romania could fail to repeat this performance in the coming years, analysts estimate. Moreover, the economic advance could drop to below 4 percent in 2009.
NewsIn
Latest News:
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei