Romania Economy Grows 5.9 Percent in 2Q (Aug 17, 2005)

Initially published in www.romania-report.ro -- Aug 17, 2005)


BUCHAREST, Romania -- Romania's economy grew 5.9 percent in the first quarter this year compared with the same period last year, the national statistics office said Tuesday.

The services sector was the main driving force of the country's economic growth showing a 6.8 percent rise from the same period last year, while industry grew by 5 percent and agriculture by 1.8 percent.

Romania hopes to join the European Union in 2007. On Monday, Romania's Central Bank governor said that the economy was growing strongly and urged the government to refrain from further stimulating demand as it could lead to higher inflation. Governor Mugur Isarescu said the bank expects inflation to drop to 7.5 percent for 2005 and 5 percent for 2006, down from 9.3 percent in 2004.

Source: AP