INFO » Romania's impressive growth may con

by Lidia Moise


BUCHAREST M.J. Stewart Youth Jersey , Aug. 19 (Xinhua) -- Thanks to growing domestic demand and foreign trade, Central and Eastern Europe (CEE) economies saw robust economic growth in the second quarter, but experts say the region may lose speed in post second quarter if the consumption appetite fades.


"Numbers in Czech Republic and Hungary are quite good, growth speed is high in Romania and this evolution is a result of vigorous intensity of consume, and also of good exports performance," said to Xinhua Cristian Popa, former vice president of the European Investment Bank (EIB).


Albeit the ingredients of growth will be delivered earlier in September Ronald Jones II Youth Jersey , the hints given by the statistics agencies and by economists suggest that apart from strong consumption and robust exports, the drivers of the region's growth give a somewhat mixed picture.


Poland's economy expanded also on the wings of a tight labor market and higher investments of small and medium-sized companies. The Czech's and Slovakia's economies benefited also from strong private investments, which were weaker in Romania and in Hungary.


ROMANIA, BEST GDP GROWTH PERFORMER


The best performer of CEE's economies was Romania with a 5.9 percent annual rate growth in the second quarter, beating market expectations.


"We expect private consumption to have remained the main engine of GDP growth on the demand side. On the supply side, the economic growth should have been broad based, as gross valued added should have increased in all sectors of activity with the exception of constructions Carlton Davis Youth Jersey ," noted Raiffeisen Bank's analyst Silvia Rosca.


Apart from consumption driver, strong industrial production played a key role in the robust growth of GDP, and services for companies also performed well, while retail sales benefited from the increase in disposable income, explained Eugen Sinca, chief economist at Banca Comerciala Romana (Romanian Commercial Bank).


The CZECH ECONOMY'S REVIVAL


The Czech Republic was the fastest growing European Union (EU) economy in its quarter-on-quarter terms, with a 2.3 percent advance as compared with the first quarter of 2017.


"GDP growth rocketed in the second quarter Vita Vea Youth Jersey , as the 4.5 percent annual growth in the second quarter of 2017, up from 3 percent in Q1 2017, surpasses all of the market estimates," noted Jiri Polansky, analyst at Erste Group. "The growth was influenced mainly by the domestic demand, which was supported by the households consumption and private investment," added Polansky.


POLAND'S LABOR MARKET-BUOYED GROWTH


Poland's economic growth exceeded the market's expectations with a 3.9-percent annual rise of GDP Noah Spence Youth Jersey , with private consumption broadly expected to remain the pillar of the growth, sustained by a strong labor market, said Katarzyna Rzentarzewska, financial analyst at Erste Group.


Other driver of the Polish economy could be the expected growth of the investment into the positive territory, as indicated by further acceleration of the construction output growth, added the analyst.


HUNGARY SLOWDOWN ON WEAKER INVESTMENT


Hungary's economy expanded at a slower pace in the second quarter, as the annual GDP growth slowed to 3.2 percent from 4.2 percent in the previous quarter.


Market-based services were the drivers of the economic performance in the second quarter Kendell Beckwith Youth Jersey , while industry and agriculture contributed to the slowdown, noted the Hungarian statistic agency's short comment.


The slowdown of the Hungarian economy might be the result of a weaker performance of investments, noted Gergely Urmossy, financial analyst at Erste Bank Hungary.


SLOVAKIA MEETS EXPECTATIONS


In the second quarter of 2017 Slovakia's economy accelerated, confirming the market's expectations. The annual growth rate was 3.3 percent in the second quarter, faster than the 3.1 percent rise in the previous one, fuelled by domestic demand Ali Marpet Youth Jersey , as consumption and investments slightly accelerated.


"Robust household consumption and Europe's economic recovery are behind the increasing economic growth in Slovakia in 2017," stressed the analyst of Unicredit Bank Slovakia Lubomir Korsnak.


GROWTH MAY CONTINUE, BUT CHALLENGES REMAIN


The region's robust growth is likely to continue, but the speed may decelerate and each country could face different challenges.


"I think the region's economies will continue to deliver good growth numbers in the light of the gradual upheaval of unorthodox monetary policies for the Federal Reserves, probably European Central Bank and the Bank of England. This is a medium term concern for all the region's currencies," said Cristian Popa.


Romania's impressive growth may continue in short run, accompanied with inflationary sparks Donovan Smith Youth Jersey , but the market is worried by signs of imbalances.


"Albeit exports growth remained strong in Romania, the net exports indicator had a negative contribution to GDP, as imports rose overwhelmingly, driven by consume," said Cristian Popa.