Statistics: Romania's economy shrinks 1.5% in Q4 over Q3, fails to escape recession

Romania's gross domestic product (GDP) compressed 1.5 percent in the last quarter of 2009 versus the previous trimester, while on the entire year, the economy reduced 7.2 percent over 2008, preliminary data published by the National Statistics Institute (INS) show. Thus, Romania failed to escape recession for the sixth trimester in a row, despite estimates. The analysts anticipated Romania's economy stepped out of recession in the fourth quarter of 2009, with an advance of 0.1 - 0.6 percent on the previous trimester, sustained by the industry's recovery, as constructions continue to have a negative contribution.

The economists expected a 7 percent economic contraction for the entire year, NewsIn states.

Compared to the same period in 2008, the economy reduced 6.6 percent in the fourth quarter, while on the whole, it stood 7.2 percent below the level of 2008. The vicegovernor of Romania's Central Bank (BNR), Cristian Popa, said on February 5 that Romania could report the first economic increase on the previous quarter in the first three months of the year. Moreover, the head of the International Monetary Fund (IMF) mission in Romania, Jeffrey Franks, said Romania's economy could resume growth in the first trimester of 2010 and will advance about 1.3 percent during the whole year.