Most economic branches had a negative contribution to the GDP progression in the first quarter of the year, with the economy performing worse than expected, and analysts saying Romania will remain in recession this year, following the fiscal adjustment measures.
"According to our estimates, the only sector that had a positive contribution to the gross domestic product was industry, while the other sectors continued to see declines, with constructions remaining the most affected branch of the Romanian economy," says Melania Hancila, chief economist of Volksbank.
The GDP fell by 2.6% in the first quarter against the similar period of last year, and by 0.3% against the first quarter of last year, according to preliminary data. Tomorrow the National Statistics Institute will publish details on the GDP progression in the first three months of the year, including its nominal value. This value could mean a higher budget deficit in the first quarter.
Ionut Dumitru, chief economist of Raiffeisen Bank, says all four main branches than make up the GDP - services, industry, constructions, and agriculture - had a negative contribution to the GDP progression in the first quarter of the year, with economic activity falling significantly short of expectations. "The rebound of monthly indicators in March could not offset the rather abrupt declines in industry and constructions in January and February."
Most economic branches had a negative contribution to the GDP progression in the first quarter of the year, with the economy performing worse than expected, and analysts saying Romania will remain in recession this year, following the fiscal adjustment measures.
"According to our estimates, the only sector that had a positive contribution to the gross domestic product was industry, while the other sectors continued to see declines, with constructions
