Output decline confirmed

The National Statistics Institute (INS) on Wednesday confirmed the 1.9% industrial output decline in February compared with the same month last year, which is very close to Ziarul Financiar’s estimates on Monday (- 2%). INS had released the output statistics at the end of last week, but had done it in an unusual manner, jointly releasing two-month data. The output during the first two months of 2003 fell only 0.2%, due to the 1.6% growth in January. This decline comes after a time of 6-7% monthly growth on the average last year and of more than 8% in 2001 and 2000. The authorities rushed to explain this possible decline or slowdown announcement, without seeing eye to eye on the matter at hand, though. Most concerned opinion was that of the National Bank of Romania (NBR). “The prospects of a slowdown in industrial output and export growth could undermine Romania’s capability to attain this year’s 5.2% economic growth target,” NBR’s chief economist Valentin Lazea told Reuters in an interview also run by Mediafax. “The latest industrial output data are distressing. The question is what can take the industry’s place?” the NBR official said. Industry accounts for about 25% of GDP at the moment. ZF