The recession persisted in Romania in the first quarter, so thatthe Gross Domestic Product fell by 2.6% compared with the same timeof last year, which is less than the analysts' 3.4% forecast;however, other economies in the region are already on therebound.
The Czech Republic's economy, for instance, progressed by 1.2%compared with the first three months of 2009, while Hungary's GDPgrowth stood at 0.1%. Compared with the last quarter of 2009, theRomanian economy went down by 0.3%, which is the bestquarter-on-quarter performance in the last eighteen months, thepreliminary data published by the National Statistics Institute(INS) reveal.
This implicitly confirms IMF's recent fears about a decline inbudget revenues, and the entire budget will now have to be adjustedto the forecasts.
"Low domestic demand and a harsh winter led to these negativeresults. On the other hand, high foreign demand from the euro zonehas driven the industry performance and reduced the extent of theeconomic decline," explains Eugen Sinca, an analyst with BCR'sresearch department.
As a result, BCR has revised its 2010 growth forecast downwards,from 1.9% to 0.2%.
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