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Analysts see Romania's soaring GDP growth as unsustainable - by Ciprian Domnisoru
The increase of the gross domestic product surpasses initial estimates and the potential of the Romanian economy and is possibly linked to non-governmental credit, economic analysts say, deeming the released growth figures unsustainable.
In the first half of the year, the GDP was up 7.4 percent in real terms, compared to a 4.9 percent growth in the first six months of 2005. "The increase exceeds expectations and is the result of both dynamic consumption and investment.
On the other hand, the seven-eight percent average increases in the sectors of the economy, even if spectacular, point to the fact that the increase rate in aggregate demand is too high to be supported by the national economy," said Radu Craciun, an analyst with ABN AMRO Bank Romania.
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