Worst quarter in ten years

Romania’s economy was adjusted by 6.4% in the first quarter of this year, with the amplitude of the decline taking analysts unawares. They believe the unpleasant surprise came from the services sector, which underwent a rather significant contraction. The economic decline is also reflected in the analysis of results reported by listed companies in the first quarter of the year, which indicates a 20% business decline (the financial sector excluded), and an 80% decline in profits. ZF analysed the results of 89 companies in ten major sectors of activity. According to the ZF analysis, the metallurgy industry was among the hardest hit, with the cumulated turnovers of companies in the sector declining by 35% against the first quarter of 2008. On the constructions and construction materials sector, the fall stood at 19%, while the petrol and energy sector saw a 17% of turnover decline. The pharmaceutical industry was the only one to rise in the first quarter, with the businesses of drug manufacturers climbing 21%.