Romania's Q2 GDP growth speeds to 5.9% y/y - flash data

Quarter-on-quarter, the Romanian economy expanded by an adjusted 1.6% in April-June, slowing down from a revised 1.8% growth rate in the preceding three-month period, INS data showed.

INS said it has revised the first-quarter economic growth figures to 1.8% quarter-on-quarter, up from 1.7%.

On a seasonally adjusted annual comparison basis, Romania's GDP growth stayed at 5.7%, unchanged from the previous quarter.

In the six months through June, Romania's economy rose by 5.8% on the year in non-adjusted terms and and by a seasonally adjusted 5.7%, INS data showed.

In 2016, Romania's economy expanded by 4.8%.

Romania's 2017 budget is built on projections of 5.2% economic growth and sets deficit at 2.99% of GDP, a target that many find too ambitious.

In June, the World Bank said it has raised its forecast for Romania economic growth in 2017 to 4.4% from 3.7% projected in January.

In May, the European Commission has lowered its projection for Romania’s economic expansion in 2017 to a real 4.3% from 4.4% forecast in February due to the fiscal easing measures of the social democratic government.

In April, the International Monetary Fund (IMF) said that Romania's real GDP growth is projected to reach 4.2% in 2017 before it decelerates to 3.4% in 2018.

(1 euro=4.5710 lei)