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Dec 05, 2017 10:57 EEST
December 5 (SeeNews) - Romania's annual economic growth accelerated to 8.8% in the third quarter of 2017 from 6.1% in the previous quarter on the back of strong performance of the agricultural and industrial sectors and on rising consumption, official data showed on Tuesday.
Quarter-on-quarter, the Romanian economy expanded by an adjusted 2.6% in July-September, speeding up from 2% growth in the second quarter, the country's statistical board, INS, said on Tuesday, confirming earlier flash data.
Overall, in the first nine months of 2017, Romania's economy grew by 7% on the year in non-adjusted terms and and by 6.9% in seasonally adjusted terms, INS data showed.
The figures are in line with a flash estimate released by INS last month.
The industrial sector grew by 7.8% on the year and by 0.4% on the quarter.
Final household consumption increased by 11.4% on the year and by 3.3% on the quarter, while gross fixed capital formation grew by 8.8% on the year and by 1.2% on the quarter.
The agricultural sector's output increased 33.4% year on year in the third quarter, and by 13.1% over the previous quarter.
Construction edged down by 1% on the year in the third quarter of 2017 and by 2% on the quarter.
Imports of goods and services increased by 10.9% on the year and by 0.9% on the quarter, while exports grew 8.1% on the year and 0.5% on the quarter.
In 2016, Romania's economy expanded by 4.8%.
Romania's 2017 budget is built on projections for 6.1% economic growth and deficit equivalent to 2.96% of GDP.
In November, Moody's Investors Service said that although Romania has made material progress in correcting macroeconomic imbalances, these improvements could be eroded in the medium-term due to a loose fiscal policy and lack of reform.
Also in November, the European Commission (EC) said that Romania has failed to do enough to reduce its 2017 budget deficit and that the necessary annual adjustment needs to be at least 0.8% of GDP.
At the time, the EC warned Romania that it may not meet its budget deficit target and urged the government to take action to avoid the opening of an excessive deficit procedure.
Also last month, the European Bank for Reconstruction and Development (EBRD) raised its expectations for Romania's economic growth to 5.3% in 2017, but warned that the government may not meet its budget deficit target.
In October, the International Monetary Fund (IMF) said that Romania's real GDP growth is projected to reach 5.5% in 2017 before it decelerates to 4.4% in 2018.
(1 euro=4.6495 lei)
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