The latest data of high-frequency indicators suggest a strong slowdown in the growth of the economy in the third quarter compared to the previous interval, under the impact of the escalation of the war in Ukraine and the extension of the associated sanctions, reads a National Bank of Romania (BNR) press release sent on Wednesday to AGERPRES.
„The latest high-frequency indicator data suggest a strong slowdown in economic growth in the third quarter compared to the previous period, under the impact of the escalation of the war in Ukraine and the extension of the associated sanctions. The evolution, however, implies a significant increase in the annual dynamics of GDP in this interval, due to a base effect, but in the context of the deceleration of private consumption growth. Relevant from this perspective is the decrease in the annual dynamics of retail trade and automotive trade, but especially in the services provided to the population in July. In the same time, industrial production and the volume of new orders in the manufacturing industry have increased their contraction in annual terms, but the volume of construction works has significantly accelerated its annual growth,” the BNR representatives say.
At the same time, exports of goods and services marginally decreased their annual variation in July, while imports increased slightly, including against the background of the unfavorable evolution of foreign prices, which led to the re-amplification of the high annual dynamics of the deficit commercial compared to the average of the second quarter, and especially that of the current account deficit, which also reflected a deterioration in the evolution of the secondary income balances this month.