Analysts see economy slowing down in Q3

'I believe that economy slowed down in Q3. On one hand, lending advanced at a lesser pace but so did industrial production. On the other hand, agricultural production was far better than the year before. Despite the good farming year, I think the growth of economy has tempered down between July - Sept. 2008. I estimate that the GDP advanced by less than 8 pct in this interval,' president of the Group for Applied Economy Liviu Voinea told Business Standard.

The setback in industry and constructions prompted the reduction of the GDP and a decline in consumption will also drive retail downwards. 'A slowdown in economy is already visible in sectors such as industry and constructions. I expect consumption to temper too on the background of the retail's slowing down. The slowdown in retail will be visible in the last months of the year and I expect it to accentuate in 2009,' said Matei Paun, managing partner with BAC Investment.

Less optimistic estimations of the GDP growth were also expressed. 'I consider that the GDP advance in Q3 will be around 5.5 - 6 pct. Constructions and industry, which are particularly affected by the global economic crisis (especially in the EU) saw a milder growth. The sector of services further performed well, fuelled by electoral expenses,' Dragos Cabat, Financial View managing partner told the cited daily.

The slowdown in economy occurs after record-high results registered in Q2 (an annual advance of 9.3 pct) and Q1 (8.8 pct). Moreover, in Q2 2008, Romanian economy was EU leader with the top economic growth in the community. As reveals Eurostat data, the 9.3 pct advance was about five times higher than the EU average of 1.7 pct.