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Vergil Voineagu (INS): Romania still mired in recession
Romania is still mired in recession, the other European Union EU member states failing to exit recession being Ireland, Greece, Luxembourg and The Netherlands, announced on Tuesday in a press conference, president of the National Institute of Statistics INS , Vergil Voineagu.
Technically, leaving the recession behind supposes an economic growth on two consecutive quarters as compared to previous quarters. Reported to the previous quarter, Romania experienced an economic decline of 0.3 percent in first quarter 2010, a growth of 0.3 percent in the second quarter 2010, and a decline of 0.7 percent in the third quarter 2010. As against the same quarters a year earlier, Romania has recorded declines of 3.2 percent, 1.5 percent and 2.2 percent respectively.
Greece and Romania were the only EU member states sawing a decline of the Gross Domestic Product (GDP) in the third quarter of this year, at an annual growth rate. While the EU reported in the third quarter of this year, compared with the corresponding period last year, an increase of 2.2 percent of GDP (after an increase of 2.0 percent in the second quarter) and the euro area had an economic growth of 1.9 percent, Greece's GDP registered a contraction of 4.5 percent at an annual rate, and Romania a downturn of 2.2 percent.
The situation is similar in what concerns the evolution of GDP in the third quarter of this year compared with the previous quarter. According to Eurostat, the European Union registered a quarterly increase of 0.5 percent and in the euro area the GDP grew by 0.4 percent in the third quarter versus the second quarter. In contrast, Greece (minus 1.1 percent) and Romania (down 0.7 percent) were the only EU member states recording a GDP decline.
In the first nine months of 2010, the GDP (gross series) drop was 1.9 percent. The industry has had a positive contribution , by 1.2 percent, while the remaining areas had a negative contribution, services - 1.1 percent, constructions - 1.1 percent, agriculture - 0.3 percent, net taxes per product - 0 6 percent.
In terms of use, gross formation of fixed capital (investments) had a negative contribution of 4.3 percent, the effective household consumption - minus 1.4 percent, and variation of stocks had a positive contribution of 4.6 percent, Agerpres informs.