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Romanian GDP Passes Pre-Crisis Peak

GDP figures from Romania showed an increased of 6% year on year in the second quarter of 2016. 

This is an increase from the 4.3% growth recorded in the first quarter of 2016, and brings the country’s GDP past the pre-crisis peak in 2008.

Negative consumer price inflation caused largely by cuts in VAT, combined with double-digit growth in public sector salaries have led to growth in consumption rates. Retail sales are up 17.1% on last year for the second quarter for example.

The International Monetary Fund (IMF) expect Romania’s GDP to expand by 3.6% in 2016.

Romania’s central bank governor Mugur Isarescu recently expressed concern that the economy was starting to show signs of overheating similar to 2007-2008. He also raised concern of increasing imports as a result of increased consumption.

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