Romania has largest annual economic growth in EU

Romania has largest annual economic growth in EU and in first quarter of this year

Romania's gross domestic product (GDP) grew by 3.8 percent in the first quarter of 2014 from the similar span of time of last year. This is the largest annual advance registered by a European Union (EU) member state, according to some preliminary estimates published on Thursday by the European office of statistics (Eurostat).

It is the second quarter in a row when Romania has had the largest annual economic growth in the EU after in the last quarter of last year Romania had a 5.1 percent increase in the GDP.

According to Eurostat, in the first quarter of 2014, the European Union registered a 1.4 percent annual economic growth and the Eurozone, a 0.9 percent advance.

In exchange, in the first quarter of this year, when compared to the last quarter of 2013, Romania had the lowest economic growth in the EU (0.1 percent), a significant slowdown from the 1.4 percent quarterly growth registered in the past three months of last year. Even so, the Romanian economy registered performances that were superior to the Czech Republic and France, whose economies stagnated in the first three months of this year, whereas the Dutch economy saw a 1.4 percent quarterly contraction.

According to the 'signal' estimates published on Thursday by the National Institute of Statistics, Romania's GDP registered a 3.8 percent increase both as a gross series and as a seasonally adjusted series in the first quarter of this year from the similar time span of 2013. According to the above-mentioned source, the GDP in the first quarter 2014 was in real terms higher by 0.1 percent than it was in the fourth quarter of 2013 (seasonally adjusted data).

Minister Delegate for Budget Liviu Voinea appreciated on Wednesday that Romania's economy saw an at least 3.5 percent economic growth in the first quarter, considering the data referring to the industrial production and consumption.

According to the above-mentioned minister, considering seasonality, Romania could have an economic growth amounting to at least 4 percent in the entire 2014.

Late last year, when the budget draft for this year was created, the Government estimated a 2.2 percent economic growth for this year.

Early this month the European Commission improved the predictions referring to Romania's economic growth in 2014 and 2015, which were estimated now at 2.5 percent in 2014 and 2.6 percent in 2015 from 2.3 percent and 2.5 precent respectively, as estimated when the winter predictions were presented in February. The European Bank for Reconstruction and Development (BERD) changed upwards the prediction referring to the advance of the Romanian economy in the next two years. According to the BERD, Romania's economy will grow by 2.6 percent this year from 2.4 percent as estimated in January and by 2.8 percent in 2015.

The International Monetary Fund estimates that this year Romania will register a 2.2 percent economic growth, followed by a 2.5 percent advance in 2015.

Source: Romanian National News Agency AGERPRES