Romanian GDP Passes Pre-Crisis Peak
- New Europe Investor
- August 16, 2016
GDP figures from Romania showed an increased of 6% year on year in the second quarter of 2016.
This is an increase from the 4.3% growth recorded in the first quarter of 2016, and brings the country’s GDP past the pre-crisis peak in 2008.
Negative consumer price inflation caused largely by cuts in VAT, combined with double-digit growth in public sector salaries have led to growth in consumption rates. Retail sales are up 17.1% on last year for the second quarter for example.
The International Monetary Fund (IMF) expect Romania’s GDP to expand by 3.6% in 2016.
Romania’s central bank governor Mugur Isarescu recently expressed concern that the economy was starting to show signs of overheating similar to 2007-2008. He also raised concern of increasing imports as a result of increased consumption.