Romania 2Q GDP -1.2% QQ, -8.8% On Yr

Romania’s second quarter gross domestic product shrank by a seasonally adjusted 1.2% compared with the earlier quarter, a flash estimate of the National Statistics Institute, or INS, showed Thursday.

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Preliminary unadjusted data showed second quarter GDP falling 8.8% from the same period of last year, below analysts’ forecast of a 9.4% contraction of the GDP.

In the first half of 2009, Romania’s GDP posted a 7.6% drop on the year in unadjusted terms.

Romanian GDP fell 6.2% in real terms in the first quarter compared with the same period of 2008, on two-digit declines in the industry and agriculture.

Romania struggles with a deepening recession, and is bound to face severe job cuts in an effort to reduce public spending.

The International Monetary Fund estimated the Romanian economy will decline by 8%-8.5% this year, double from its initial rate forecast of a 4.1% contraction.

Preliminary results on Romanian economic development in the first six months are due out September 1.

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