The National Institute of Statistics announced that Romania's growth domestic product rose by 1.8% in real terms in the third quarter of 2011, from the previous three months, and was down by 0.1% from its estimate and 4.4% from July to September quarter of 2010.

The economic expansion was made on the strength of the volume and operations and, consequently, of the gross added value in agriculture, hunting, as well as forestry, fishing and fish farming (16.4%) and industry (6.8%). Relatively low volume of operations was registered in constructions (1.8%) and trade, auto and home appliance repairs, hotels and restaurants, transport and telecommunications (1.1%).

Public administration spending cuts (-3.7%) was offset by increased home spending (1%), which led to steady end consumption during January 1st 2011 to September 30th 2011 YoY. The immovable capital was up 4.4%.

According to seasonally adjusted data, the gross domestic product, current prices, estimate for the third quarter of this year was of ROL 143.467 billion, up by 1.8% in real terms from the second quarter of the year. The GDP estimate, gross series, for the third quarter of this year stood at ROL 154.933 billion, current prices, up by 4.4% YoY in real terms.

Agriculture, hunting, forestry, fishing and fish farming posted the steepest rise, 22.1%, in the volume of operations, followed by constructions, 6.9% and industry (5.9%). Slight volume rises were ported in the trade sector, repairs of cars and home appliances; hotels and restaurants; transport and telecommunications (1.4%) and financial, real estate, rental and service operations (0.2%).

The volume decline was similar to other service operations (down 3.1%). The economic uptrend resulted in a rise in volume of taxes collected into the state budget, with net taxes product going up 1.5%. Domestic demand rose 5.1% YoY. End consumption increased 2.8% on the back of homestead volume spending going up 3.6%.

According to the INS, the downturn in net exports had a negative effect on the GDP, as result of a more significant rise in the volume of imported goods and services (10.5%), against the export volume (8.9%). Estimates by international institutions over the economic growth of the Romanian economy this year range between 1.5% (IMF prognosis) and 1.7% (autumn projections by the European Commission). The National Prognosis Commission maintained a growth prognosis of 1.5% for 2011.

For 2012, Romania's economic growth was revised down from 3.5% to 2%, amid the problems Romania will face as a result of problems faced by EU economies. The Bucharest Executive drawn up its draft budget for 2012 starting from a deficit of 1.9% GDP and an economic growth of 2.1%.

(Sourced from www.nineoclock.ro)