BUSINESS

Economy returns to growth after six quarters of decline

Romania’s economy gives signs of recovery, as it scored a growth in Q2 2010, against the previous quarter. According to data released by the National Statistics Institute and quoted by Agerpres, the Gross Domestic Product in the second quarter of this year was 0.3 pc higher than in Q1, in real terms (seasonally adjusted data). During this recession episode, Romanian economy also experienced a 0.1 pc increase in Q3 2009 against the previous quarter, but then resumed its decline. Romania entered recession when its economy decreased for two consecutive quarters – Q4 against Q3 2008 and Q1 2009 against Q4 2008. The economic crisis focused the Romanian Government’s attention to pursue short term fiscal consolidation, and at the same time opened a window of opportunity for public administration reforms with effects on the medium- and long-term, a World Bank report reads. The report also shows that Romania’s public sector is too costly within the Government’s capacity to raise revenues, which requires administration retrenchments to affordable levels. “We will work with the Government to find ways to explain the key reforms and build broad coalitions,” said François Rantrua, World Bank Country Manager for Romania.

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